Gold on Wednesday is trading close to a two-week high hit in the previous trading session, amid investors’ concerns over the current trade tensions between the United States and European Union, Reuters reported.

The Trump administration threatened Tuesday to impose tariffs on $11 billion worth of European Union products, escalating trade tensions with the EU.

Spot gold traded at $1,303.14 an ounce. Gold hit its highest level in two weeks in the previous session, when it traded at $1,306.09 per ounce.

U.S. gold futures traded at $1,307.60 an ounce.

Meanwhile, the International Monetary Fund reduced its global economic growth forecast Tuesday due to trade tensions and tighter monetary policy. It stated that it predicts the global economy to grow by only 3.3 percent, down from the previously forecasted growth of 3.5 percent.

Source: Reuters