2018.05.3122:32:00UTC+00Gold Prices Edge Up on Trade War Concerns

Gold prices rose on Friday as worries over a global trade part escalated after the U.S. imposed tariffs on steel and aluminum imports from Canada, Mexico and the European Union.

Spot gold edged up 0.1 percent at $1,299.51 per ounce. U.S. gold futures for June delivery fell 0.1 percent at $1,2298.60 per ounce.

Holdings of SPDR Gold Trust declined 0.52 percent to 847,03 tonnes.

Canada and Mexico swiftly retaliated against the U.S. decision to hit steel and aluminum imports with levlies and the European Union had its own response already at hand.

In the political scene, U.S. President Donald Trump played down the prospects of securing a quick deal in getting North Korea to scrap its nuclear arms as a delegation from Pyongyang travelled to meet him with a letter from North Korean leader Kim Jong Un, indicating a proposed summit may be back on track.

Italy's anti-establishment parties restarted coalition plans on Thursday, snapping three months of political deadlock by announcing a government that pledges to boost spending, question EU financial rules and crack down on immigration.

Meanwhile, economic data showed U.S consumer spending recorded its biggest increase in five months in April, a further indication that economic growth was regaining momentum early in the second quarter, while inflation continued to climb steadily.

Eurozone inflation surged beyond estimates in May on higher fuel costs, giving the ECB a respite following a market turbulence that put its planned exit from an ultra loose stimulus programme in danger of being postponed.