- Gold prices rose in Asian trading on Tuesday, recovering from a three-week low as investors sought safety amid escalating trade tensions between the United States and China.

- Spot gold rose by 0.7% to $3,002.68 per ounce.

- Gold had fallen below $3,000 per ounce in the previous session, marking its lowest level since March 13, as investors liquidated their positions to cover losses in other financial markets.

- Traditionally, gold is a safe haven, but sometimes investors sell it along with other asset classes to cover losses elsewhere.

- Gold futures expiring in June rose by 1% to $3,024.0 per ounce on Monday.

- The rise in gold was driven by its appeal as a haven amid growing trade tensions after U.S. President Donald Trump on Monday threatened to impose an additional 50% tariff on Chinese goods if Beijing did not roll back its recent 34% increase on American imports.

- This aggressive move fueled renewed fears of a full-blown trade war, prompting a flight to safety in gold.

- In response, China’s Ministry of Commerce vowed it would "fight to the end" if Washington proceeded with the new tariffs, raising concerns over further economic disruption and triggering a risk-off mood in global markets.

- The sell-off in gold may be short-lived as trade and tariff uncertainty bolsters its safe-haven appeal.

- Central banks may continue to buy gold as geopolitical tensions and economic uncertainty push them to increase allocations toward safe-haven assets.

- Continued weakness in the U.S. dollar also supported gold, with growing speculation about Federal Reserve interest rate cuts.

- The U.S. Dollar Index slipped 0.4% in Asian trading on Tuesday.

- Meanwhile, silver futures rose by 1.3% to $29.970 per ounce, while platinum futures gained 0.5% to $919.0 per ounce.

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