2018.06.0406:32:00UTC+00Gold Stable as Trade War Worries Counter U.S. Rate Hike Bets

Gold prices traded within a tight range on Monday as persistent concerns regarding trade wars between U.S. and other developed economies offset expectations of a U.S. interest rate increase this month.

Spot gold was almost unchanged at $1,293.23 per ounce, after reaching its lowest level since May 23 at $1,289.12 in the prior session.

U.S. gold futures for August delivery edged down 0.2 percent to $1,297.20 per ounce.

The precious metal is often perceived as a safe-haven asset during times of political and economic uncertainty.

In a note, MKS trader Samuel Laughlin said that political issues in Italy and Spain have eased for the moment, but there are remaining trade tensions between the U.S. and some parties that may take on a supportive role over the near-term to more so limit declines rather see an upward test.

Finance leaders of the top U.S. allies expressed anger over the Trump administration's metal tariffs on Saturday, ending a three-day meeting with a tough rebuke of Washington and setting the stage for a heated dispute and a G7 meeting next week in Quebec.

U.S jobs growth increased in May and the unemployment rate fell to an 18-year low of 3.8 percent, underlining expectations that the Federal Reserve will hike rates this month. Higher interest rates take off the shine from gold, which is non-interest paring and is priced in dollars.