PRECIOUS-Gold gains as risk appetite dips on Trump’s tariff threat

* SPDR gold holdings at lowest since Oct. 11

* Asian shares barely above five-week low (Updates costs)

By Arijit Bose

Could 7 (Reuters) – Gold costs rose on Tuesday as U.S. President Donald Trump’s risk to hike tariffs on Chinese language imports rekindled commerce tensions between the 2 economies and pushed traders to hunt insurance coverage in safe-haven property.

Spot gold was up zero.2 % at $1,283.41 per ounce, as of 0731 GMT.

U.S. gold futures have been up zero.1 % to $1,284.50 an oz.

On Sunday, self proclaimed “tariff-man” Trump warned of a tariff hike on Chinese language items, marking a drastic change in stance from the earlier week the place he lauded progress made between the 2 international locations relating to commerce.

Threat sentiment confronted a blow from Trump’s tariff risk with fragile Asian shares offering impetus to gold, which is utilized by traders to hedge towards financial and political instability.

“There are important catalysts for gold with the escalations on the trade-war entrance yesterday, however it’s shocking we now have not seen a big comply with by means of,” mentioned Stephen Innes, head of buying and selling and market technique, SPI Asset Administration.

Including to world nervousness, the Trump administration is deploying a provider strike group and bombers to the Center East in response to troubling “indications and warnings” from Iran, widening the rift between the 2 international locations.

“Some are additionally specializing in the tensions within the Center East and the 2 catalysts are adequate sufficient to carry costs however there’s a normal reluctance to push costs greater over $1,285,” Innes added.

A faction of the market nonetheless count on the US and China to seek out widespread floor and imagine that Trump’s tariff risk is probably going a negotiation tactic.

“Gold didn’t ship a considerable achieve following the Trump tariff risk and (gold) markets may even see bearish momentum speed up if we do see a constructive final result with the talks in Washington this week,” OANDA senior market analyst Edward Moya mentioned in a observe.

Including to expectations, China’s commerce ministry confirmed on Tuesday that Vice Premier Liu He’ll go to the US on Could 9 and Could 10 for bilateral commerce talks on the invitation of senior U.S. officers.

Holdings of SPDR Gold Belief, the world’s largest gold-backed exchange-traded fund, continued a dismal run, falling zero.16 % to 739.64 tonnes on Monday, its lowest since Oct. 11.

Silver rose zero.2 % to $14.94 an oz, whereas platinum gained 1.2 % to $883.34.

Palladium climbed zero.9 % to $1,349.11 an oz. (Reporting by Arijit Bose in Bengaluru; modifying by Uttaresh.V and Rashmi Aich)

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