It would appear as if the gold market has found some buying interest early today off the potential for an escalation of trade tensions between the US and Europe.

Like the US/Chinese trade battle the markets are concerned that trade spats will be enough to derail fragile growth which in turn increases the appetite for gold.

With the Royal Bank of Australia overnight cutting interest rates by 25 basis points to 1% it is possible that gold is also getting lift from the idea that a number of central banks are poised to act.

On the other hand gold should draft some lift from news that Indian gold imports last month increased by 12.6% on a year-over-year basis and from the fact that UBS raised its six and 12 month gold price forecast.

In what has become a trend ETF's yesterday increased their holdings of gold for the 14th straight trading session which brings this year's overall purchases to 3.2 million ounces.

It should also be noted that silver ETF's increased their holdings bringing this year's net purchases to 10.5 million ounces.

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