PRECIOUS-Gold gains as equities slip on trade woes, growth concerns

(Updates prices)
* U.S. stocks dragged down by financials, trade war
* Gold prices up about 17% this year
* Traders see 74% chance of 25 bps U.S. rate cut in
September

By Sumita Layek
Aug 12 (Reuters) - Gold prices rose on Monday and stayed
above the key $1,500 per ounce psychological level, as stock
markets slipped on concerns about global economic growth and the
U.S.-China trade dispute, triggering safe haven bids.
Spot gold XAU= was up 0.6% at $1,505.92 per ounce at 1:44
p.m. EDT (1744 GMT), holding close to last week's more than
six-year high of $1,510. U.S. gold futures GCv1 settled up
0.6% at $1,517.20 an ounce.
"We have a little weakness in the equity markets globally
this morning so certainly we have continued safe haven bids for
gold," said David Meger, director of metals trading at High
Ridge Futures.
"With continued disruptions in Hong Kong during the weekend,
trade tensions and global central bank easing, it's not hard to
understand why gold prices remain supported," Meger added.
U.S. stocks were dragged down by financial stocks, as
investors shunned risky bets on fears that a drawn-out
U.S.-China trade war could force the global economy into
recession. MKTS/GLOB .N
U.S. President Donald Trump said on Friday he was not ready
to make a deal with China and called the planned September round
of trade talks into question. Trump had earlier pledged to tax
an additional $300 billion worth of Chinese imports, effective
on Sept. 1. Gold prices rose as much as 4% last week and are up about
17% this year.
"Anything is possible (with gold prices), if the trade
negotiations deteriorate further prices can go even higher,"
said Miguel Perez-Santalla, vice president of Heraeus Metal
Management in New York.
Analysts said negative debt yields around the globe were
further supporting bullion. Non-interest-bearing gold tends to
benefit when yields on other assets are low.
Investors are focused on the Federal Reserve's annual
symposium in Jackson Hole, Wyoming, next week, with investors
seeking greater clarity on the path of interest rates. Traders
see a 74% chance of a 25 basis-point rate cut by the U.S.
central bank this September. FEDWATCH
Hedge funds and money managers raised their bullish stance
in COMEX gold in the week to Aug. 6, the U.S. Commodity Futures
Trading Commission (CFTC) said on Friday. CFTC/
Silver XAG= was up 0.8% at $17.07 per ounce. Platinum
XPT= was flat at $858.88 per ounce, while palladium XPD=
gained 0.9% to $1,433.69 an ounce.