June 3 (Reuters) - Gold prices rose on Monday to their
highest in more than two months, with investors seeking refuge
in safe-haven assets as heightened Sino-U.S. trade tensions and
Washington's threat of tariffs on Mexico stoked worries of a
global recession.
FUNDAMENTALS
* Spot gold XAU= was up 0.5% at $1,311.15 per ounce at
0153 GMT, after touching its highest since March 28 at
$1,311.44.
* The metal climbed above the key $1,316 level on Friday for
the first time since April 11.
* U.S. gold futures GCv1 rose 0.4% to $1,314.40 an ounce.
* U.S. stock futures, Asian share markets and oil prices
slipped to multi-month lows on Monday amid the mounting trade
worries. * Tensions between the United States and China escalated
during the weekend as the two countries clashed over trade,
technology and security.
* A senior Chinese official and trade negotiator said on
Sunday the United States cannot use pressure to force a trade
deal on China, refusing to be drawn on whether the leaders of
the two countries would meet at the G20 summit to work out an
agreement later this month.
* Global equity funds have seen outflows of $10.3 billion in
the past week as the U.S.-China trade conflict prompted
investors to take shelter in government bonds. * In a sign that Sino-U.S. frictions are putting a big
strain on the global economy, South Korea's exports - seen as a
bellwether of world growth - fell 9.4 percent in May, worse than
a median forecast for a 5.6 percent decline, official data
showed on Saturday. * The gloomy outlook has prompted traders to increase bets
that the U.S. Federal Reserve will cut interest rates sooner
rather than later.
* Hedge funds and money managers increased their net long
positions in COMEX gold in the week to May 28, the U.S.
Commodity Futures Trading Commission (CFTC) said on Friday.
* Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.32 percent to 743.21
tonnes on Friday from Thursday. GOL/ETF
* The U.S. Mint sold 4,000 ounces of American Eagle gold
coins in May, down 60 percent from the previous month, according
to the latest data. * Gold premiums in top consumer China rose last week as
investors bought the metal as a safe-haven, while bullion demand
moderated in India as local prices jumped to two-week highs.
GOL/AS
DATA AHEAD (GMT)
* 0750 France Markit Mfg PMI May
* 0755 Germany Markit/BME Mfg PMI May
* 0800 EU Markit Mfg Final PMI May
* 0830 UK Markit/CIPS Mfg PMI May
* 1400 US ISM Manufacturing PMI May