2019.05.2314:54:00UTC+00Gold Futures Settle Notably Higher On Safe Haven Appeal

Gold futures settled at one-week high on Thursday, as traders sought the safe haven asset after global equities tumbled and the dollar lost ground amid mounting worries about U.S.-China trade war.

The dollar index dropped to a low of 97.81, losing nearly 0.25%.

Gold futures for June ended up $11.20, or 0.9%, at $1,285.40 an ounce.

On Wednesday, gold futures for June settled at $1,274.20 an ounce, gaining $1.00, or 0.1%, for the session.

Silver futures for July ended up $0.164, at $14.613 an ounce, while Copper futures for July settled at $2.6805 per pound, up $0.0025 from previous close.

The U.S. and China look headed for a prolonged standoff over trade after the U.S. squeezed Chinese companies by threatening to shut off supplies of key components.

A recent comment by Treasury Secretary Steven Mnuchin that U.S. has no plans to go to Beijing to resume trade negotiations have added to fears that the trade dispute between the world's two largest economies is unlikely to end anytime soon.

Chinese Commerce Ministry spokesman Gao Feng reportedly said in a briefing today that the Trump administration must "show sincerity and correct their wrong actions" if the U.S. wants trade talks to continue.

"Negotiations can only continue on the basis of equality and mutual respect," Gao said, noting that China is closely monitoring developments and preparing a necessary response.

Markets are now hoping something positive will emerge when Chinese President Xi Jinping and U.S. President Donald Trump meet on the sidelines of the G20 meeting in Japan at the end of June.