Gold prices are slightly higher in midday U.S. trading Tuesday. The metal is seeing some very modest safe-haven demand amid a U.S. stock market sell-off early this week. However, a firmer U.S. dollar index today that is trading not far below last week’s two-year high is limiting the upside for gold. The near-term price uptrends in the U.S. stock indexes (as seen on the daily bar charts) are now in jeopardy of being negated. That would be a significant positive for the metals markets because such would be a bearish technical development and would also suggest a continued outflow of monies from paper assets—monies then seeking a new home that could include hard assets like precious metals. World stock markets were mixed overnight in cautious trading. The stock, financial and commodity markets are trying to digest the surprise developments on the U.S.-China trade front that saw President Trump threaten new tariffs on imported Chinese products. However, the marketplace is somewhat assuaged Tuesday as the Chinese trade delegation is still headed for Washington, D.C. for talks this week, including their chief negotiator. Also, upon reflection, many traders and investors are wondering if Trump’s threatening tweets on Sunday were just a negotiating tactic. Still, Trump’s trade advisors said Monday that the Chinese commitments on trade had seen “erosion.” Gold and silver markets bulls have been disappointed their safe-haven metals have not seen better demand amid the heightened geopolitical uncertainty that includes the potential U.S.-China trade war escalation but also increased U.S.-Iran tensions. However, reports say demand from major gold-consuming country India is expected to be significantly higher on the geopolitical tensions, especially as this is the time of stronger seasonal demand for gold.