The gold market continued its strengthening trend as the USD weakened following the push of the trade war triggered by the United States (US) against Canada, Mexico and China.
At 8.40 am, the price of gold was at $2,914.88, which remained flat since it opened in early trading on Wednesday in the Asian session.
Market sentiment remained weak after the imposition of 25% on Canada and Mexico and 10% on China caused investors to shift to safe assets, which pushed the price of bullion higher.
Meanwhile, recently released US data sparked recession fears.
On Monday, the February ISM and S&P Global Manufacturing PMI readings were mixed. US Treasury bond yields declined on the data as traders began to price in a Federal Reserve (Fed) interest rate cut.
Therefore, traders seeking safety by pulling gold towards the upper $2,900.
Gold traders' focus shifts to the ISM Services PMI release, Initial Jobless Claims data and February Non-Farm Payrolls.
