PRECIOUS-Gold eases as firm dollar, bond rally offset global slowdown worries

* SPDR Gold holdings rise zero.5% on Wednesday

* Platinum falls to over Three-month lows (Updates costs)

By Sethuraman N R

Could 30 (Reuters) – Gold costs inched down on Thursday as bonds rallied and the greenback hovered close to a two-year excessive, offsetting the assist from an more and more bitter Sino-U.S. commerce dispute that rekindled doubts about world financial development.

Spot gold was down zero.2% at $1,277.29 per ounce, as of 0536 GMT.

U.S. gold futures edged zero.four% decrease to $1,276.30 an oz.

“Traders appear to be they like U.S. Treasuries as a secure haven for now, evident by the inverted U.S yield curve,” Howie Lee, an economist at OCBC Financial institution, stated.

“A powerful greenback can also be possible impeding massive gamers reminiscent of China and India from consuming an excessive amount of (of gold).”

The greenback held regular towards its key rivals on Thursday as escalating Sino-U.S. commerce tensions compelled traders into the shelter of safe-haven property, together with authorities bonds.

Towards a basket of six main currencies, the greenback was regular at 98.147, hovering inside the attain of a two-year excessive of 98.371 hit per week in the past. The index is up greater than 2% for the yr.

Asian shares tracked Wall Road losses on Thursday as newest exchanges between Beijing and Washington signalled the heightened threat of a protracted commerce warfare.

Frightening commerce disputes is “bare financial terrorism”, a senior Chinese language diplomat stated on Thursday, ramping up the rhetoric towards the USA amid a bitter commerce warfare that’s not displaying any indicators of ending quickly.

“Gold continues to be buying and selling bullishly on the medium-term technicals, though there’s a perceived lack of momentum,” stated Nicholas Frappell, world normal supervisor at ABC Bullion.

“With bond yields so low and weakening fairness markets, gold might discover assist. So far as the worth stays above $1,265-$1,270, gold will rally again to $1,306 and $1,316 ranges.”

In the meantime, holdings of SPDR Gold Belief, the world’s largest gold-backed exchange-traded fund, rose zero.5% to 740.86 tonnes on Wednesday.

Regardless of Wednesday’s rise, SPDR gold holdings are down over 6% to this point this yr.

Gold ETF holdings have remained muted regardless of the escalation in Sino-U.S. tensions, suggesting that traders are taking a look at different sources of portfolio hedge, OCBC’s Lee stated.

Amongst different treasured metals, silver fell zero.Three% to $14.37 per ounce. The steel had dropped to $14.25 on Tuesday, its lowest since early December.

Platinum dipped zero.2% to $792 per ounce, after earlier falling to its lowest since Feb. 15 at $785.50. Palladium dropped zero.9% to $1,336.85 per ounce. (Reporting by Arijit Bose in Bengaluru; Modifying by Rashmi Aich and Sherry Jacob-Phillips)

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