Investors are increasingly concerned about the escalating trade war after U.S. President Donald Trump and his team revisited protectionist trade policies.

U.S. government bond yields remain on a downward trend due to recent U.S. PMI data, which has raised concerns about the country's economic growth potential.

Additionally, rising inflation has lowered expectations that the Federal Reserve will further cut interest rates. Wage pressures on U.S. government bond yields could also push gold prices higher in the future.

Source: Fxstreet