Oct 9 (Reuters) - Gold prices firmed on Wednesday as
tensions between the United States and China ratcheted up ahead
of crucial trade talks later this week, sapping risk appetite,
while concerns over Brexit added to bullion's safe haven appeal.
FUNDAMENTALS
* Spot gold XAU= rose 0.1% to $1,505.95 per ounce as of
0027 GMT. U.S. gold futures GCcv1 gained 0.5% to $1,511.40.
* Asian stocks fell the most in a week, with MSCI's broadest
index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down
0.3%. MKTS/GLOB
* Ahead of trade talks later this week, the U.S. government
widened its trade blacklist to include some of China's top
artificial intelligence startups, punishing Beijing for its
treatment of Muslim minorities and ratcheting up tensions.
* U.S. President Donald Trump also said he hoped Beijing
would find a humane and peaceful resolution to political
protests in Hong Kong, adding that the situation had the
potential to hurt their trade discussions.
* The talks are getting underway ahead of a scheduled
increase in U.S. tariffs on $250 billion worth of Chinese goods,
to 30% from 25% on Oct. 15.
* The U.S. Treasury yield curve steepened, driven by a
falling two-year yield after Federal Reserve Chairman Jerome
Powell flagged openness to further rate cuts and said the Fed
would expand its balance sheet to ensure money markets function
smoothly. * Uncertainties on the U.S. political outlook supported
bullion, after the White House said on Tuesday it would refuse
to cooperate with an "illegitimate, unconstitutional"
congressional impeachment inquiry, setting Trump on a collision
course with the Democratic-led House of Representatives.
* Outside of the United States, the European Union accused
Britain of playing a "stupid blame game" over Brexit on Tuesday
after a Downing Street source said a deal was essentially
impossible because German Chancellor Angela Merkel had made
unacceptable demands. AHEAD (GMT)
1200 Brazil IPCA Inflation Index MM Sept
1800 US Federal Open Market Committee releases
minutes from its Sept. 17-18 policy meeting