Gold price trims losses

Bengaluru-India (July 7)  Gold prices narrowed losses on Friday as U.S. tariffs on Chinese imports weighed on the greenback, stoking fears of a full-blown trade war between the two leading economies.

China has implemented additional tariffs on some import products from the United States immediately after U.S. tariffs on $34 billion in Chinese imports took effect, state media reported.

"If the trade war escalates and then China could sell U.S. treasuries and buy gold. This would be a big event," said Helen Lau, analyst, Argonaut Securities.

Spot gold was 0.1 percent lower at $1,256.54 an ounce by 0702 GMT, having dropped to $1,252.15 earlier in the session.

The bullion was, however, headed for its first weekly gain in four. U.S. gold futures for August delivery slipped 0.1 percent to $1,257.50 an ounce.

TheNews