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Gold Prices Rebound As Trade Jitters Sour Risk Appetite

Gold prices rebounded from a one-week low on Wednesday as U.S.-China trade tensions flared up and growth worries resurfaced.

Spot gold rose 0.7 percent to $1,335.65 an ounce, after hitting its lowest level since June 3 at $1,319.35 in the previous session. U.S. gold futures were up 0.6 percent at $1,339.50 an ounce.

Worries over U.S.-China trade war flared up after U.S. President Donald Trump said that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five "major points" which he did not specify.

U.S. Commerce Secretary Wilbur Ross said the G20 is not a place where anyone makes a definitive deal.

Elsewhere, a measure of China's factory gate inflation slowed in May on weak commodity demand, reinforcing worries about cooling growth in the world's second largest economy.

Investors were also reacting to Trump's comments that U.S. interest rates
were "way too high". Trump said that the U.S. has low inflation and the officials of the Federal Reserve "don't have a clue" on rates.

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