Gold prices eased from a one-week high, but still remained up on Wednesday, as the US dollar dipped versus the yen and share markets faltered after China retaliated against a US move to slap tariffs on $50 billion worth of its imports. Beijing said after Chinese markets had closed that it would impose additional tariffs on $50 billion worth of US imports ranging from cars, chemicals and corn to whisky and tobacco, initially raising trade-war jitters.
Spot gold was up 0.2 percent at $1,335.66 per ounce by 1:33 pm EDT (1733 GMT), while US gold futures for June delivery settled up $2.90, or 0.2 percent, at $1,340.20. Retaliation from China, the world's largest gold consumer, earlier propelled spot gold prices to a one-week high at $1,348.06 per ounce as the US dollar tumbled against the yen and equities dipped.
A lower appetite for risky investments took some strength from the dollar, which made dollar-priced gold cheaper for holders of non-US currencies. It also tends to make gold more appealing as a safe-haven asset during times of economic or geopolitical uncertainty. "Gold worked for the hedgers today, as expected. When stocks were off over 500 points, gold was up over $1,350. As stocks pared losses, (gold) gave back gains," said George Gero, managing director of RBC Wealth Management.
Meanwhile, spot silver fell 0.6 percent to $16.27 per ounce, after dipping to a six-day low of $16.23. Platinum dropped 0.9 percent to $915.50 an ounce, earlier falling to $908, its lowest level since December. Palladium lost 0.7 percent to $922.70 an ounce after touching $913, its lowest price since October.