PRECIOUS-Gold climbs back toward six-year peak on U.S.-China trade clash

* SPDR gold holdings jump to 14-month peak on Monday
* Gold priced in sterling hit record peak
* Trade truce unlikely before 2020 U.S. election: Goldman
* GRAPHIC-World FX rates in 2019: http://tmsnrt.rs/2egbfVh

(Updates prices)
By Swati Verma
Aug 6 (Reuters) - Gold prices strengthened on Tuesday,
consolidating near the highest in more than six years as an
intensifying U.S.-China trade war threatened global economic
growth.
Spot gold XAU= rose 0.5% to $1,470.96 an ounce as of 2:08
p.m. EDT (1808 GMT), after hitting $1,474.81, the highest since
May 2013. The previous session, gold jumped as much as 2%.
U.S. gold futures GCcv1 settled up 0.52% at $1,484.20.
"There is a great deal of uncertainty in terms of economic
growth especially concerning U.S.-China trade frictions. Given
the increased volatility in U.S. and global stock markets, gold
is receiving support as result of that," said Jeff Klearman,
portfolio manager at GraniteShares.
A rout in global markets eased as China kept the yuan on a
tight leash a day after letting it weaken past 7 to the dollar.
This led the United States to label Beijing a currency
manipulator, a decision that China's central bank said would
"severely damage international financial order and cause chaos
in financial markets." MKTS/GLOB
Influential Wall Street bank Goldman Sachs said it no longer
expects Washington and Beijing to agree on a truce to end their
prolonged trade dispute before the November 2020 presidential
election. "Many market watchers now reckon the U.S.-China trade war
being ratcheted up another notch will prompt the Federal Reserve
to again lower U.S. interest rates soon," Jim Wyckoff, senior
analyst with Kitco Metals, wrote in a note. "Speeches by Federal Reserve officials in the coming days
will garner extra scrutiny from the marketplace."
St. Louis Federal Reserve President James Bullard on Tuesday
said Fed does not need to "pile on" interest rate cuts at a time
when the economy continues to grow and is still adjusting to the
looser monetary policy set by the Fed this year. The U.S. central bank last week cut interest rates for the
first time since the financial crisis in 2008. Lower rates
reduce the opportunity cost of holding bullion, which yields no
interest.
Holdings of the largest gold-backed exchange-traded fund
(ETF), SPDR Gold Trust GLD , rose to 835.16 tonnes on Monday,
the highest level since June 6, 2018. GOL/ETF
"Gold demand may continue to increase. With the uncertainty
surrounding global markets, gold will be added to a lot of
investors portfolios," Klearman added.
Meanwhile, gold denominated in sterling XAUGBP=R soared to
an all time high of 1,213.54 pounds an ounce as investors
worried about the possible repercussions of Britain's impending
exit from the European Union.
Among other precious metals, silver XAG= inched up 0.2% to
$16.42 an ounce and palladium XPD= jumped 1.9% to $1,441.55.
Platinum XPT= fell 0.4% to $849.96.