PRECIOUS-Gold prices firm as US-China trade tensions heat up

Could 9 (Reuters) – Gold steadied on Thursday, with its attraction as a safe-haven for buyers burnished by rising tensions forward of key Sino-U.S. commerce negotiations this week.

FUNDAMENTALS

* Spot gold was up zero.1 % at $1,281.61 per ounce at 0114 GMT.

* U.S. gold futures edged up zero.1 % to $1,283.10 an oz..

* U.S. President Donald Trump stated on Wednesday that China “broke the deal” it had reached in earlier commerce talks with the US, and vowed to not again down on imposing new tariffs on Chinese language imports except Beijing “stops dishonest our staff”.

* Trump has threatened to boost tariffs to 25 % from 10 % on $200 billion value of Chinese language imports at 12:01 a.m. ET (0401GMT) on Friday. Beijing has threatened to retaliate if tariffs rise, with out elaborating on the main points.

* Asian shares hit six-week lows in early commerce on Thursday as rising issues forward of the most recent U.S.-China commerce talks fanned recent issues in regards to the outlook for the worldwide financial system.

* The greenback hovered close to a six-week low versus the yen early on Thursday, weighed down towards its safe-haven Japanese peer as threat aversion gripped broader markets.

* A weaker greenback makes bullion cheaper for holders of different currencies.

* Additionally aggravating geopolitical issues, Trump on Wednesday imposed new sanctions on Iran, concentrating on income from its exports of commercial metals. That was the most recent salvo in tensions between Washington and Tehran over a 2015 worldwide accord curbing the Islamic Republic’s nuclear programme.

* This was quickly after Iran introduced that it was stress-free some restrictions on its nuclear programme, steps that stopped wanting violating the cope with world powers for now, however threatening extra motion if nations don’t defend it from U.S. sanctions.

* Barrick Gold Corp , the world’s second-largest gold producer, on Wednesday stated it remained open to new investments, even because it plans to shed $1.5 billion of much less productive mines.

DATA AHEAD (GMT)

* 0130 China PPI YY April

* 0130 China CPI YY April

* 1230 U.S. Worldwide Commerce March

* 1230 U.S. Preliminary Jobless Claims Weekly

* 1230 France Reserve Property Complete April (Reporting by Arijit Bose in Bengaluru; Modifying by Joseph Radford)

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