Gold prices rose along with other hedge assets Wednesday as there was no sign of a cooling down in the U.S. -China trade dispute and investors feared a global slowdown.
Spot gold rose 0.2% to $1,281.30 an ounce at 1754 GMT. U.S. futures closed up 0.3% at $1,281 an ounce.
"The gold market is not only affected by the trade war, but also by the economic conditions of the United States, China and Europe and the situation of Britain's separation from Europe. In this environment, investors and businesses are not sure how to bet in this market, "said Jeffrey Christian, executive partner of CPM Group.
"Investors do not know whether to long or short stocks; long bonds or short bonds. As a result, they are investing in the precious metal market. Over the past few days, the U.S. stock market has also fallen.
Worries about the global recession have resurfaced in recent days as global risk aversion has warmed as macroeconomic data from major economies have been disappointing.
Global stock markets fell and U.S. government bond yields fell to a 20-month low as investor confidence declined as concerns about global economic growth intensified.
China's newspapers warned Wednesday that Beijing was prepared to use rare earth metals to counter the United States in a protracted trade dispute between China and the United States, raising tensions between China and the United States.
Two days ago, President Trump said Washington was not ready to reach an agreement with China.
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