May 30 (Reuters) - Gold prices were steady on Thursday as
the dollar hovered near a two-year high, impeding the support
from an exacerbated Sino-U.S. trade war bringing back doubts
about global economic growth.
FUNDAMENTALS
* Spot gold XAU= was broadly unchanged at $1,278.77 per
ounce, as of 0110 GMT.
* U.S. gold futures GCv1 edged 0.1% lower to $1,279.30 an
ounce.
* The dollar held steady against its key rivals on Thursday
as escalating Sino-U.S. trade tensions forced investors into the
shelter of safe-haven assets, including government bonds and
gold. FRX/
* Against a basket of six major currencies, the dollar
inched 0.03% lower to 98.113 .DXY , hovering within reach of a
two-year high of 98.371 reached a week ago. The index is up more
than 2% for the year.
* On the other hand, Asian stocks tracked Wall Street losses
on Thursday as rhetoric from Beijing and Washington over trade
matters kept alive investor concerns about the tariff war's
impact on global economic growth. MKTS/GLOB
* China is ready to use rare earths to strike back in a
trade war with the United States, Chinese newspapers warned on
Wednesday in strongly worded commentaries on a move that would
escalate tensions between the world's two largest economies.
* The U.S. Defense Department is now seeking new federal
funds to bolster domestic production of rare earth minerals and
reduce dependence on China, the Pentagon said on Wednesday, amid
mounting concern in Washington about Beijing's role as a
supplier. * China's Huawei Technologies Co Ltd HWT.UL has filed a
legal motion seeking to declare a U.S. defense law
unconstitutional, in the telecom equipment maker's latest bid to
fight sanctions from Washington that threaten to push it out of
global markets. * Earlier this month, the U.S. Commerce Department put
Huawei on a trade blacklist that bans companies from doing
business with the Chinese firm, a move which immediately
disrupted the global tech sector. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.48% to 740.86
tonnes on Wednesday from 737.34 tonnes on Tuesday. GOL/ETF
DATA AHEAD (GMT)
* 1230 U.S. GDP 2nd Estimate Q1
* 1230 U.S. Initial Jobless Claims Weekly