PRECIOUS-Gold rises as growth, trade worries curb risk taking

(Update prices, add comment)

By Sethuraman N R

2. July (Reuters) – Gold prices rose Tuesday after
largest one-day percentage falls in 2-1 / 2 years the previous one
increased, as the risk appetite provided concerns over global growth
and uncertainty about a trade in Chinese-American trade.

Spot gold was up 0.6% to $ 1.391.80 per ounce at 1205
GMT, after falling 1.8% on Monday, its biggest one-day
percentage decrease since November 201[ads1]6.

U.S. Gold futures were up 0.5% at $ 1,395.70 a ounce.

President Donald Trump said on Monday some trade deal with
China needs to be "somewhat tilted" in favor of United
States. The US government also threatened tariffs of $ 4
billions of additional EU goods for a long time
aviation support dispute. "The trading phase may be a positive factor for gold as
Agreement is still not reached yet … The stock markets are in red,
which is another positive thing for gold, says Carlo Alberto De
Casa, chief analyst with ActivTrades.

Data showed that production activity dropped last month,
debilitating appetite for risk. The factory activity went over a lot
of Europe and Asia in June, while the growth in the industry was cooled
in the United States, keep the world monetary policy makers
under pressure to avert a recession. "Investors are still confident that the US Federal Reserve
will cut prices in the next few months. As far as we are
can see gold increase over $ 1,400. "

Gold prices hit a six-year high last week at $ 1,438.63 a
ounce, driven by a deaf view from major central banks and
an escalation of tensions between the United States and Iran.

The market will now focus on US non-farm payroll data guilty
on Friday, which will help investors better assess
The Federal Reserve will cut interest rates later this month. "Upcoming US economic figures and the Federal Reserve
The speakers' comments are critical as we approach the Federal Open
Market Committee meeting in late July, "UBS analysts said
in a note.

"The potential for renewed trading tension and broader
geopolitical risks, in our opinion, are likely to encourage further
flows into gold by financial investors. "

Stocks of SPDR Gold Trust, the world's largest
gold-backed listed fund rose 0.78% to 800.20 ton
Monday. Spot gold can jump to $ 1,401, as it has found a support in
a narrow range of $ 1,386 – $ 1,387 per gram, according to Reuters
technical analyst Wang Tao. Elsewhere, silver was $ 15.13 per ounce,
while palladium increased 0.2% to $ 1.551.67 per ounce.

Platinum got 0.4% to $ 833.45, after touching one
close to seven weeks high on Monday.

(Reporting of Nallur Sethuraman in Bengaluru; editing of Emelia
Sithole-Matarise and David Evans)

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