Sino-US trade tensions lift safe haven demand

GLOBAL stock markets slumped as risk appetites diminished over setbacks in US-China trade negotiations. President Donald Trump has vowed to impose additional tariffs on Chinese products as Beijing reneged on previously held commitments. The United States has announced US$200 billion worth of tariffs on Chinese goods despite ongoing negotiations between top US-China trade officials. Beijing has pledged to retaliate in equal measure though exact details lack clarity for now.

Shifting risk sentiments has buoyed bullion appeal as investors sought safe haven shelter over a rapid deterioration in US-China trade negotiations. The precious metal has illustrated positive trading conditions as traders mull over rising geopolitical uncertainties in the current term.

What should investors look out for in the longer term?