Gold prices are moderately higher in midday U.S. trading Thursday. Some mild safe-haven demand is featured amid two geopolitical developments this week. A weaker U.S. dollar index today is also working in favour of the precious metals market bulls. However, gains in gold are limited by the spectre of slower global economic growth meaning less demand for precious metals. June gold futures were last up $4.20 an ounce at $1,285.60. July Comex silver was last down $0.092 at $14.77 an ounce. World stock markets were mostly lower overnight. U.S. stock indexes are solidly down at midday. The U.S.-China trade war is escalating, with both sides digging in their heels and threatening new sanctions on each other. Chinese trade officials are in Washington Thursday to continue discussions. New U.S. tariffs on Chinese imported goods are set to go into effect at midnight tonight, with most now thinking no substantive deal can be reached at this time. President Trump said at a rally Wednesday evening that China “broke the deal” and said moments ago that he has an “excellent alternative” to the U.S.-China trade deal. That alternative could mean even more U.S. tariffs slapped on China’s imports. World government bond yields are declining amid concerns an escalation in the trade war between the world’s two largest economies will lead to slower global economic growth. That would be bearish for commodity markets, including the metals, due to less producer and consumer demand. The Chinese yuan Thursday fell to its lowest level against the U.S. dollar since January. The U.S.-China trade conflict is presently overshadowing another potential geopolitical flashpoint. Iran’s government said this week it will stop complying with some commitments it made in the United Nations nuclear deal in 2015. This week the U.S. sent a naval task force to the Persian Gulf, including an aircraft carrier, due to what the U.S. said were threats against the U.S. in the region. One miscalculation by either side could lead to serious military conflict