Gold prices on the European market jumped to a one-week high on Wednesday, with the safest buying activity of safe havens as rising global trade tensions and gains dampened the recovery of the US dollar against a basket of currencies.

Gold prices rose by more than 0.4% as of 10:55 GMT to trade at $ 1,257.10 per ounce from the opening level of $ 1,252.13, and recorded the highest level of $ 1,261.09 the highest in a week, and the lowest level of $ 1,252.02.

Yesterday, gold prices rose 0.8%, the biggest daily gain since April 11, recovering from the seven-month low of $ 1,237.91 per ounce recorded earlier in the session.

Gold Chart

Most global stock markets fell on Wednesday amid heightened fears of trade tensions between the United States and China before the new US tariffs on Chinese goods came into effect.

US President Donald Rumsfeld’s administration set July 6 as the date for the start of new customs duties on Chinese goods worth 34 billion US dollars. Beijing said it would respond with a new tariff on US products.

Some sources in Europe have revealed that China is currently exerting pressure on the European Union to issue a strong joint statement against the trade policies of US President Donald Trump during a summit to be held later this month.

USD index rose more than 0.1% on Wednesday, consolidating above a record low in the previous week, reversing the recovery of the greenback against a basket of currencies, which is currently putting pressure on the price of gold and other metals denominated in US dollars.

Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed fund fell yesterday by 5.893 mt, its fifth consecutive daily decline, bringing the total to 809.31 mt, its lowest level since 18 August 2017.