Gold rose sharply in intraday trading on Monday, hitting a four-week high as geopolitical risks between Russia-Ukraine and the US-China trade conflict intensified.
At 9.20am, gold was at $3,365.28, down 0.48% from its opening in early Asian trading on Tuesday.
Market sentiment turned gloomy on news that Ukraine had launched air strikes on Russia, downing several other aircraft.
Meanwhile, US President Donald Trump doubled tariffs on steel and aluminium imports to 50% effective June 4, sending rhetoric against China dragging US stocks lower.
CNBC reported that both leaders Donald Trump and Xi Jinping will meet soon.
On the data front, the ISM Manufacturing PMI for May revealed that business activity was weakening. Meanwhile, the employment index subcomponent improved compared to the previous total, which was positively received by market participants who were eyeing the Non-farm Payrolls (NFP) figures on Friday.
The price of gold bullion rose following a slightly dovish approach by Fed Governor Christopher Waller, who said that rate cuts are still on the cards by the end of the year.
He also warned that policymakers need to be more focused on the mission of controlling inflation.
