Gold Prices Rebound to One-Week High Due To Global Trade Tensions

Gold prices rose to a one-week high early, rebounding from a seven-month low touched in the previous session, as the dollar weakened against the yen and an end-of-week deadline loomed for U.S. tariffs on Chinese imports.

Spot gold was up 0.4 percent at $1,257.51 an ounce as of 0058 GMT. It touched a one-week high of $1,257.63 earlier in the session. The metal fell to $1,237.32, its lowest since Dec. 12, in the previous session.

U.S. gold futures were 0.4 percent higher at $1,258.70 an ounce.

The dollar was down 0.2 percent against the yen at 110.3.

China is putting pressure on the European Union to issue a strong joint statement against President Donald Trump`s trade policies at a summit later this month but is facing resistance, European officials said.

China`s leaders are confident the country can cope with major and external risks, they said at a high-level internal financial meeting, amid financial turbulence at home and rising trade tensions with the United States.

China`s central bank moved to calm jittery financial markets on Tuesday after the yuan dropped through the psychologically significant 6.7 to the dollar mark, hitting its lowest in almost a year as anxieties over U.S. trade frictions deepened.

U.S. Secretary of State Mike Pompeo will visit Mexico on July 13 to meet President-elect Andres Manuel Lopez Obrador and discuss immigration, trade, security and development, the U.S. and Mexican governments said .

New orders for U.S.-made goods unexpectedly rose in May, pointing to a strengthening manufacturing sector, but business spending on equipment appeared to have slowed further in the second quarter.

The Bank of Japan is likely to cut its price growth forecasts at a policy meeting later this month as long-term inflation expectations stall, sources said, highlighting the bank`s difficulty in hitting its elusive price target.

The European Central Bank`s chief economist said on Tuesday he was confident inflation in the euro zone would continue accelerating towards the ECB`s target of just under 2 percent even after the end of its massive bond purchases.

Holdings of SPDR Gold Trust , the world`s largest gold-backed exchange-traded fund fell 0.73 percent to 803.42 tonnes on Tuesday.