New Delhi, April 14 -- Rising tensions between China and the U.S. may once again be pushing Chinese investors toward the safety of gold. After months of strong inflows into equities-fueled by Beijing's aggressive stimulus push and a tech-led rally-the resurgence of trade frictions has introduced fresh uncertainty, prompting investors to reconsider safer assets like gold.

According to analysts, the price premium for gold in China, the world's top consumer, widened last week as both investors and consumers sought refuge amid escalating trade tensions with the United States.

The escalating tensions have also led the Chinese currency, the yuan, to touch a low last seen in 2007 against the U.S. dollar last week, and it slipped to a 19-month ...