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PRECIOUS-Gold prices rise as U.S., China kick off new round of tariffs

Published 02/09/2019, 02:08
Updated 02/09/2019, 02:10
© Reuters.  PRECIOUS-Gold prices rise as U.S., China kick off new round of tariffs
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Sept 2 (Reuters) - Gold prices gained early on Monday as the

United States and China launched fresh tit-for-tat tariffs on

each others exports, escalating the prolonged trade war and

adding to fears of a global economic slowdown.

FUNDAMENTALS

* Spot gold XAU= was 0.6% higher at $1,528.31 per ounce at

0048 GMT, having fallen to a one-week low at $1,517.11 in the

previous session.

* U.S. gold futures GCv1 were up 0.5% at $1,537.70 an

ounce.

* The United States began imposing 15% tariffs on a variety

of Chinese goods on Sunday - including footwear, smart watches

and flat-panel televisions - as China began imposing new duties

on U.S. crude. U.S. President Donald Trump said the sides would

still meet for talks later this month. * China plans to provide more support for its economy,

including investing in infrastructure projects and regional

development, while maintaining a prudent monetary policy with

"reasonably" ample liquidity, the State Council said on Sunday.

* The dollar index .DXY against a basket of six major

currencies was down 0.1%, while Wall Street stock futures

weakened in early trade on Monday, setting a dour tone for Asian

markets. USD/ MKTS/GLOB

* New Austrian National Bank governor, Robert Holzmann, is

wary about adding further stimulus to the euro zone economy, he

told Austrian broadcaster ORF TV on Sunday, his first day on the

job. * SPDR Gold Trust (P:GLD) GLD , the world's largest gold-backed

exchange-traded fund, said its holdings fell 0.23 percent to

878.31 tonnes on Friday from 880.36 tonnes on Thursday.

* Hedge funds and money managers increased their bullish

stance in COMEX gold and upped net long positions in silver

contracts in the week to Aug. 27, the U.S. Commodity Futures

Trading Commission (CFTC) said on Friday. * British lawmakers opposed to a no-deal Brexit will attempt

to pass a law this week to stop Prime Minister Boris Johnson

from letting Britain crash out of the European Union on Oct. 31,

the opposition Labour Party's Brexit spokesman said.

* Thousands of protesters blocked roads and public transport

links to Hong Kong airport on Sunday in a bid to draw world

attention to their fight for democracy for the Chinese-ruled

city which is facing its biggest political crisis in decades.

AHEAD (GMT)

0145 China Caixin Mfg PMI Final Aug

0500 India IHS Markit Mfg PMI Aug

0600 Russia Markit Mfg PMI Aug

0750 France Markit Mfg PMI Aug

0755 Germany Markit/BME Mfg PMI Aug

0800 EU Markit Mfg Final PMI Aug

0830 UK Markit/CIPS Mfg PMI Aug

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