Gold hits a 2-month high on safe haven demand
Gold prices rose on Monday to their highest level in more than two months as rising trade tensions between China and the United States and Washington's threat to impose customs duties on Mexico raised fears of a global recession and pushed investors toward the safe haven metal.
By 0627 GMT, spot gold rose 0.5 percent to $ 1311.24 an ounce after hitting its highest since March 27 at $ 1312.60 an ounce.
US gold futures rose 0.4 percent to $ 1,316.20 an ounce.
US equity futures, Asian stock markets and oil prices fell to their lowest level in several months amid growing trade tensions.
Tension between the United States and China escalated over the weekend as countries clashed over trade, technology and security.
In a sign that China-US disputes are under heavy pressure on the world economy, South Korea's exports fell 9.4 percent in May, a level worse than the average forecast of 5.6 percent, official data showed on Saturday.
The gloom of prospects has pushed traders to increase their bets that the Federal Reserve will cut interest rates sooner rather than later.
Gold prices were above the $ 1,300 key level for the first time since April on Friday.
For other precious metals, silver rose 0.2 percent to $ 14.59 an ounce, and platinum rose 1 percent to $ 799.25 an ounce, after falling last week to its lowest level since Feb. 15 at $ 784.42 an ounce. Palladium rose 1.1 percent to $ 1,338.24 an ounce.
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