Fresh tensions over the abrupt change in direction in US-China trade talks have sent GOLD prices soaring to a one-week high on Wednesday. Since Sunday night after Trump posted the tweet about hiking tariffs, markets have been trading with a risk-off sentiment.

This has boosted safe haven appeal in global markets and sent gold up to $1,287 yesterday. At the time of writing, gold continues to trade a little under $1,286.

The overall sentiment in markets continues to remain cautious even after China has confirmed that Vice Premier Liu He will travel to Washington for the next round of discussions on the trade deal.

There are also some downside risks which could potentially support gold prices, including economic growth concerns and weakness in equity markets. But with recent weakness in the US dollar, prices are expected to remain bullish.