PRECIOUS-Gold rises as U.S., China begin new round of tariffs

* Trump says meeting still on with Chinese negotiators
* SPDR Gold Trust holdings fell 0.23% on Friday

(Adds comments, updates prices)
By Eileen Soreng
Sept 2 (Reuters) - Gold prices rose on Monday buoyed by
safe-haven demand, as the United States and China launching
tit-for-tat tariffs on each other's goods escalated a prolonged
trade war and added to fears of a global economic slowdown.
Washington began imposing 15% tariffs on a variety of
Chinese goods on Sunday, including footwear, smart watches and
flat-panel televisions, as Beijing began imposing new duties on
U.S. crude. Spot gold XAU= was up 0.2% at $1,522.1 per ounce at 0742
GMT, having fallen to a one-week low at $1,517.11 in the
previous session.
U.S. gold futures GCv1 were flat at $1,529.50 an ounce.
"The reality of the trade war with the new tariffs being
implemented over the weekend has kept a risk-off tone in
markets this morning," said ANZ analyst Daniel Hynes.
U.S. President Donald Trump said both the sides would still
meet for talks later this month.
"There is still a very high level of scepticism. Traders
want to see talks restart with both parties suggesting some
positive outcomes before any optimism around the progress sets
in," Hynes added.
Escalation in the trade war between the world's biggest
economies and heightened fears over a global economic downturn
contributed to a rise of more than $100 for gold in August.
A private business survey showed on Monday China's factory
activity unexpectedly expanded in August as production edged up,
but orders remained weak and business confidence faltered amid
Sino-U.S. trade woes. Global stocks fell on Monday as the imposition of new
tariffs reinforced investors' worries over slowing global
growth, with no clear end in sight for the trade war.
MKTS/GLOB
On the technical front, "near-term supportive interest sits
around $1,515-$1,520, while resistance cuts in toward $1,535
with extension toward $1,550," MKS PAMP said in a note.
"At current levels, both CFTC (Commodity Futures Trading
Commission) and ETF (exhange-traded fund) positions remain
bullish and are likely to continue to be so over the near-term
should price action remain firm broadly around $1,500-$1,480."
Holdings HLDSPDRGT=XAU in the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD , fell 0.23% to
878.31 tonnes on Friday. However, it was up about 12% for the
year so far.
Speculators increased their bullish stance in COMEX gold and
upped net long positions in silver contracts in the week to Aug.
27, U.S. CFTC data showed on Friday. Among other precious metals, silver XAG= dipped 0.2% to
$18.31 per ounce.
Spot platinum XPT= climbed 0.5% to $935.45 per ounce,
while palladium XPD= was up 0.4% at $1,536.55.
Trading could be subdued as U.S. financial markets are
closed on Monday for the Labour Day holiday.