Gold price hits one-week high

BENGALURU, May 08 (Reuters): Gold prices hit their highest level in more than a week on Wednesday as renewed concern over the US-China trade dispute and its potential impact on global growth dented risk sentiment, spurring some demand for safe-haven assets.

Spot gold was up 0.2 per cent at $1,287.20 per ounce, as of 0909 GMT, having hit their highest since April 26 at $1,287.94, earlier in the session. US gold futures edged 0.2 per cent higher to $1,288.20 an ounce.

Some in the market expect the gold price rally to be limited, with the weakness in equity markets seen as temporary.

US President Donald Trump tweeted on Sunday he would raise tariffs on $200 billion worth of Chinese goods, while Washington accused Beijing of backtracking from commitments made during trade negotiations. World shares held near five-week lows on Wednesday as investors moved into the safety of bonds, the Japanese yen and gold.

Chinese Vice Premier Liu He will visit the United States on Thursday for trade talks and additional tariffs are set to take effect on Friday if a trade agreement is not reached by then. While gold has benefited from a rising demand for safe-haven assets, prices have not been able to significantly move up despite the given backdrop in global markets.