PRECIOUS-Gold hits more than 6-year high on Hong Kong, Argentina

* SPDR Gold holdings up 0.9% on Monday
* Silver touches more than 1-1/2 year high
* U.S. 30-year bond yields slip to lowest since July 2016
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

(Updates prices)
By K. Sathya Narayanan
Aug 13 (Reuters) - Gold hit a more than six-year high on
Tuesday as unrest in Hong Kong and a rout in the Argentine peso
drove investors already spooked by the U.S.-China trade war into
havens such as bullion at the expense of riskier assets such as
stocks.
Spot gold XAU= was up 1% at $1,525.99 per ounce as of 1123
GMT, off a day high of $1,534.31 - its highest level since April
2013.
U.S. gold futures GCcv1 was up 1.3% to $1,537 an ounce.
"Bond yields and equities are down which are the main reason
for gold to be higher. There is a bit of safe-haven (interest),"
ABN Amro analyst Georgette Boele said. "People are nervous about
Hong Kong again, and that's why Asian markets were down."
Share markets slid for a third day on Tuesday as investors
were spooked by fears of a drawn-out global trade war, the Hong
Kong protests and a crash in the peso. MKTS/GLOB
In Hong Kong, pro-democracy protesters on Monday managed to
shut down the city's airport, the world's busiest air cargo hub.
Elsewhere, Argentina's peso ARS= collapsed on Monday,
losing roughly 15% of its value against dollar after crumbling
to an all-time low. Fears of a possible return to interventionist policies of
the previous government have gripped the Argentine market since
market-friendly President Mauricio Macri lost a primary election
by a bigger-than-expected margin. Bullion, along with the Japanese yen and U.S. Treasuries, is
seen as a relatively safe investment in times of political and
financial uncertainty.
The yen JPY= rose to a seven-month high against the dollar
in the previous session, while U.S. 30-year bond yields
US30YT=RR extended Monday's losses to slip to their lowest
since July 2016. USD/ US/
Analysts said negative debt yields around the globe were
further supporting bullion. Non-interest bearing gold tends to
benefit when yields on other assets are low.
Market focus is now on the U.S. Federal Reserve's annual
symposium next week for clues on the future trajectory of
interest rates. Traders see a 69% chance of a 25 basis-point
rate cut by the U.S. central bank this September. FEDWATCH
On the technical front, "a solid breakout and daily close
above the $1525 level is likely to inject gold bulls with enough
inspiration to challenge $1,550," FXTM analyst Lukman Otunuga
said in a note.
Holdings in the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust GLD , jumped 0.9% to 847.77 tonnes on
Monday. GOL/ETF
Among other precious metals, silver XAG= climbed 2% to
$17.40 per ounce, having touched its highest since January 2018.
Platinum XPT= rose 1.4% to $864.77, while palladium XPD=
gained 0.5% to $1,434.68 an ounce.

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