Gold to stay high amid trade row

The confusion about the tariff war between the US and China will keep gold maintaining its safe-haven status and keep prices high despite some signs of relations improving between the world's two largest economies.

- Waheed Abbas [e-mail]

In addition, expectations around the easing of monetary policy and geopolitical tensions in the Middle East will also support the precious metal in the coming months.

After hitting a record high of $3,500 per ounce globally and Dh420 per gram in Dubai last week, the precious metal slipped $3,318.47 per ounce and Dh400 per gram over the weekend.

Analysts expect gold could soon touch $3,450 again if the economic and geopolitical uncertainties persist.

"Tensions between the world's two largest economies intensified further with reports that China has cancelled a series of Boeing aircraft orders, citing a need to 'reassess strategic priorities'.

Although Chinese authorities have not issued any official statements regarding the move, analysts widely interpret this as a form of indirect economic retaliation, meant to signal that Beijing is also capable of leveraging market power to apply pressure on Washington," said Linh Tran, market analyst at xs.com.

The precious metal rally slowed after the US and China exempted certain goods from tariffs in the growing row.