Gold prices edge higher

BENGALURU, May 07 (Reuters): Gold prices edged higher on Tuesday as investors moved away from riskier assets after US President Donald Trump threatened to hike tariffs on Chinese imports, resurfacing trade tensions and in turn lifting demand for the safe-haven metal.

Spot gold was up 0.1 per cent to $1,281.65 per ounce, as of 0950 GMT.

US gold futures fell 0.1 per cent to $1,282.70 an ounce.

"Donald Trump tweets over the weekend and reactions out of China has sent shock waves. European equities are further down this morning and this is a situation where gold is seen as a safe-haven," Quantitative Commodity Research analyst Peter Fertig said.

US President Donald Trump said tariffs on $200 billion worth of Chinese goods would increase to 25 per cent from 10 per cent on Friday, reversing a decision he made in February to keep them at 10 per cent as the two sides made progress on trade talks.