Gold hits 1-week high on simmering US-China trade spat

Gold prices touched a more than one-week high on MondayÂas fears of a protracted U.S.-China trade war hurt risk sentiment, while poorÂeconomic data from the United States bolstered bets of a U.S. Federal ReserveÂrate cut.

Spot goldÂedged 0.1% higher to $1,286.21 per ounce as of 0714 GMT.

Earlier in the session, the metal touched $1,287.32, its highest since May 17.Â

U.S. gold futuresgained 0.2%, to $1,285.60 an ounce.Â

Gold has really reversed earlier losses as risk appetite in the marketÂremains rather shaky, said Benjamin Lu, an analyst with Singapore-based PhillipÂFutures.

U.S. sanctions on Huawei and even the rest of the Chinese technology firmsÂhave really aggravated trade tensions.

China on Friday denounced U.S. Secretary of State Mike Pompeo forÂfabricating rumours after he said the chief executive of Chinas HuaweiÂTechnologies Co Ltd was lying about his companys ties to the BeijingÂgovernment.

A string of weak data from the United States late last week stirred upÂconcerns that its protracted trade-war with China has started taking a toll onÂthe countrys economy, and promoted bets for a much expected rate cut by theÂFederal Reserve.

Over the weekend, U.S. President Donald Trump repeated a complaint that theÂFederal Reserves policies have kept U.S. economic growth from reaching its fullÂpotential.