Heightened trade tensions between US and China boost gold demand

Gold prices rose more than 1% on Thursday as investors turned to safe-haven assets following another round of trade tensions between the US and China. Higher duties on goods from China, the world's largest consumer of metals, added to market concerns despite a 90-day pause on tariffs for other countries.

US President Donald Trump announced plans to increase duties on Chinese goods from 104% to 125%. This is another step in a series of mutual trade restrictions between the world's two largest economies introduced in recent days.

At the same time, the White House administration temporarily reduced tariffs for a number of other countries, indicating an attempt to balance foreign economic pressures.

FOMC Meeting Minutes indicate that committee members are concerned about inflation risks and the slowdown of the country's economy.

Meanwhile, market participants are awaiting the release of key US inflation data. The Consumer Price Index will be released on Thursday and the Producer Price Index is due on Friday. These reports may influence further expectations on monetary policy, according to Reuters.