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PRECIOUS-Gold gains as recession fears spark safe-haven rush


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* 2-yr, 10-yr Treasury yields invert for first time in 12yrs

* SPDR Gold holdings jumped 0.9% on Wednesday

* U.S. retail sales data expected at 1230 GMT (Adds comments, details, updates prices)

Aug 15 (Reuters) - Gold prices rose on Thursday, asinvestors flocked to safer havens after an inverted U.S. bondyield curve pointed to new recession fears following pooreconomic data from Germany and China.

Spot gold XAU= was up 0.2% at $1,519.18 at 0313 GMT. OnTuesday, gold prices scaled its highest level since April 2013at $1,534.31.

U.S. gold futures GCcv1 gained 0.2% to $1,530.50 an ounce.

"We are seeing flight to safety, market confidence is a bitshaky. We have been seeing that the economy is showing signs ofweakness and it's starting to slow in the second half of thisyear," said Benjamin Lu, an analyst at Phillip Futures.

"A successful breakout at $1,525 per ounce will see goldbulls make an attempt on previous highs of $1,535."

Yields on 10-year U.S. Treasury notes US10YT=RR fell belowthe two-year yield US2YT=RR , intra-day, for the first timesince 2007. The inversion, which has historically signalled alooming recession, triggered an extensive flight to safety. US/

Fears of a global recession gripped financial markets aroundthe world as stocks slumped to more than two-month lows onThursday, tracking a Wall Street slide. MKTS/GLOB

"We have continued safe-haven buying with stock marketslooking pretty wobbly ahead of U.S. retail sales data, which isreally important," OANDA analyst Jeffrey Halley said.

"The U.S. is the last man standing amongst Europe and China.We could see an outsized reaction overnight if data comes inugly, which should help gold again."

Economic data from China and Germany suggested a falteringglobal economy, hit by the worsening U.S.-China trade war,Brexit and geopolitical tensions. urn:newsml:reuters.com:*:nL8N25A1D1urn:newsml:reuters.com:*:nL4N25A0U7

Gold, which pays no interest of its own, is often used as ahedge against political and financial risks.

Markets are anticipating U.S. retail sales data due later inthe day, which could serve as an indicator of the strength ofthe world's largest economy.

On the trade front, senior U.S. officials said on Wednesdaythat China has made no trade concessions after the United Statesdelayed tariffs on some Chinese imports, the latest sign thatthe trade saga is going nowhere. urn:newsml:reuters.com:*:nL2N25A0CZ

Investors are focused on the Federal Reserve's annualsymposium next week. Traders see a 63.7% chance of a 25basis-point rate cut by the Fed this September. FEDWATCH

Lower U.S. interest rates put pressure on the dollar andbond yields, increasing the appeal of non-yielding bullion.

Holdings of SPDR Gold TrustGLD , the world's largestgold-backed exchange-traded fund, rose 0.9% to 844.29 tonnes onWednesday. GOL/ETF

Among other precious metals, silver XAG= rose 0.6% to$17.30 per ounce.

Platinum XPT= gained 0.54% to $845 an ounce and palladium XPD= climbed 0.7% to $1,434.41 an ounce. (Reporting by Brijesh Patel and Harshith Aranya in Bengaluru;Editing by Shounak Dasgupta, Bernard Orr) ((Brijesh.Patel1@thomsonreuters.com ; Within U.S. +1 651 8485832, Outside U.S. +91 8067493865; Reuters Messaging:Brijesh.Patel1.thomsonreuters.com@reuters.net))






This article appears in: Stocks , World Markets , Politics
Referenced Symbols: GLD ,



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