Prices of safe-haven gold dipped below the psychologically important $1,300 level on Tuesday in Asia despite escalating trade tensions between the U.S. and China.

Gold Futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.1% to $1,299.95 by 1:28 AM ET (05:28 GMT).

The move lower in gold prices came even as the trade war between China and the U.S. escalated, after China announced a retaliatory tariff-hike on $60 billion worth of U.S. goods.

"China's adjustment on additional tariffs is a response to US unilateralism and protectionism," its finance ministry said. "China hopes the US will get back to the right track of bilateral trade and economic consultations and meet with China halfway."

The announcement came after the U.S. raised tariffs on $200 billion worth of Chinese goods. U.S. President Donald Trump said Beijing “broke the deal” by reneging on earlier commitments.

Trump said he would meet Chinese President Xi Jinping next month in Japan. Trump said he expects the discussion with his Chinese counterpart to be “very fruitful.”

He had warned Beijing not to retaliate. On Monday he said, "We're dealing with them. We have a good relationship."

The prospect of a prolonged trade war has rattled investors and led to a sharp selloff in stocks. Gold prices, which tend to move in the opposite direction to stocks and other assets perceived as risky, gained about 1.5% last week.