PRECIOUS-Gold firms as US-China trade escalation dampens risk taking

* Trump says he’ll hike U.S. tariffs on Chinese language items this week

* Gold specs change web lengthy place in week to April 30

* SPDR gold holdings fall to lowest since Oct. 11 (Provides feedback, updates costs)

By Swati Verma

Could 6 (Reuters) – Gold edged up on Monday as a slide in world share markets after Trump administration’s risk of additional tariffs on China prompted buyers to favor safe-haven belongings, however bullion’s upside was capped by a agency greenback.

Spot gold gained zero.2 p.c to $1,281.76 per ounce as of 02:22 p.m. EDT (1822 GMT). U.S. gold futures settled up zero.2 p.c at $1,283.eight an oz..

“We had two massive geo-political occasions over the weekend, one is the information from Iran with U.S. provider, bombers group headed to Center East and all of the stuff with China about tariffs,” stated Bob Haberkorn, senior market strategist at RJO Futures.

The 2 geo-political threat occasions ought to have helped gold commerce larger however the greenback strengthened on U.S. President Donald Trump’s feedback, which has saved gold costs in test, he added.

The U.S. greenback firmed in opposition to most main currencies on Monday after Trump stated he would elevate tariffs on $200 billion value of Chinese language items this week.

Trump stated he would goal an additional $325 billion of Chinese language items with 25 p.c tariffs “shortly,” basically protecting all merchandise imported into the US from China.

Shares all over the world tumbled and oil costs slumped after Trump’s announcement, bettering the attraction of bullion, seen as a substitute funding throughout instances of political and monetary uncertainties together with the Japanese yen and U.S. Treasuries.

Additionally serving to bullion was information, disclosed by Trump’s nationwide safety adviser John Bolton on Sunday, that the US was deploying a provider strike group and a bomber process pressure to the Center East to ship a transparent message to Iran.

Reflecting buyers sentiment towards gold, speculators switched to a web lengthy place in COMEX gold within the week to April 30, the U.S. Commodity Futures Buying and selling Fee (CFTC) stated on Friday.

“Individuals are fairly complacent in regards to the fairness markets for the previous few months. And the current sell-off is making buyers to rethink about their portfolio,” stated Michael Matousek, head dealer at U.S. International Traders.

“Loads of them see they’ve underweighted gold and are including to their place a bit of bit.”

In the meantime, holdings of SPDR Gold Belief, the world’s largest gold backed alternate, slipped to their lowest since Oct. 11. Holdings fell zero.6 p.c on Friday.

The U.S. tariffs on China, the world’s greatest auto market, additionally weighed on palladium costs. The auto-catalyst metallic slipped 2.7 p.c to $1,334.01 per ounce.

Silver fell zero.2 p.c to $14.90 per ounce, whereas platinum gained zero.four p.c, to $872. (Reporting by Brijesh Patel and Diptendu Lahiri in Bengaluru; Modifying by Tom Brown)

Our Requirements:The Thomson Reuters Belief Rules.

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