Gold prices erased early losses yesterday to remain close to record highs on safe-haven demand driven by inflation concerns sparked by US President Donald Trump's tariffs on Mexico, Canada and China.
Having initially slid more than 1 percent on a surging US dollar, spot gold recovered to be down 0.1 percent at US$2,799.09 (HK$21,832.90) an ounce by 1146 GMT while US gold futures lost 0.1 percent to US$2,832.
Gold has a good chance of rising above US$3,000 in the Year of the Snake on the back of geopolitical tensions, rate cuts and trade wars, said Haywood Cheung Tak-hay, president of the Hong Kong Gold Exchange.
He believes that gold trading volumes in Hong Kong could rise up to 15 percent - and globally by 30 percent - this lunar year.