India, July 14 -- Gold prices traded higher on Monday amidst trade tensions and expectations of Federal Reserve interest-rate cuts this year.

Spot gold edged up by 0.3 percent to $3,365.55 per ounce in European trade, with potential gains capped by resilience in the dollar. U.S. gold futures for August delivery were up 0.4 percent at $3,377.06.

U.S. President Donald Trump escalated his trade offensive, leading to increased volatility in global markets and prompting investors to seek refuge in bullion.

Trump on Saturday threatened to impose a 30 percent tariff on imports from Mexico and the European Union starting on Aug 1, even as they are locked in long negotiations.

Caution over the Russia-Ukraine conflict also aided gold, after Trump...