Prices of the safe-haven Gold slipped and fell below the key $1,300 level on Tuesday in Asia despite escalating trade tensions between the U.S. and China.
Gold Futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.1% to $1,299.95 by 1:28 AM ET (05:28 GMT).
The fall in gold prices came even after the trade war between China and the U.S. escalated over the weekend, as China announced a retaliatory tariff-hike on $60 billion worth of U.S. goods.
"China's adjustment on additional tariffs is a response to US unilateralism and protectionism," its finance ministry said. "China hopes the US will get back to the right track of bilateral trade and economic consultations and meet with China halfway."
The announcement came after the U.S. raised tariffs on $200 billion worth of Chinese goods. U.S. President Donald Trump said Beijing “broke the deal” by reneging on earlier commitments.
Trump said he would meet Chinese President Xi Jinping next month in Japan. The President said he expects the discussion with his China counter to be “very fruitful.”
He had warned Beijing not to retaliate. On Monday he said, "We're dealing with them. We have a good relationship."
The prospect of a prolonged trade war has rattled investors and led to a sharp selloff in stocks last week. Gold prices, which tends to move in directions opposite to stocks and other risk assets, gained about 1.5% last week.
