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PRECIOUS-Gold prices firm as U.S.-China trade tensions heat up


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May 9 (Reuters) - Gold steadied on Thursday, with its appealas a safe-haven for investors burnished by growing tensionsahead of key Sino-U.S. trade negotiations this week.

FUNDAMENTALS

* U.S. gold futures GCv1 edged up 0.1 percent to $1,283.10an ounce.

* U.S. President Donald Trump said on Wednesday that China"broke the deal" it had reached in earlier trade talks with theUnited States, and vowed not to back down on imposing newtariffs on Chinese imports unless Beijing "stops cheating ourworkers".

* Trump has threatened to raise tariffs to 25 percent from10 percent on $200 billion worth of Chinese imports at 12:01a.m. ET (0401GMT) on Friday. Beijing has threatened to retaliateif tariffs rise, without elaborating on the details.

* Asian shares hit six-week lows in early trade on Thursdayas growing concerns ahead of the latest U.S.-China trade talksfanned fresh concerns about the outlook for the globaleconomy. MKTS/GLOB

* The dollar hovered near a six-week low versus the yenearly on Thursday, weighed down against its safe-haven Japanesepeer as risk aversion gripped broader markets. FRX/

* A weaker dollar makes bullion less expensive for holdersof other currencies.

* Also aggravating geopolitical concerns, Trump on Wednesdayimposed new sanctions on Iran, targeting revenue from itsexports of industrial metals. That was the latest salvo intensions between Washington and Tehran over a 2015 internationalaccord curbing the Islamic Republic's nuclear programme. urn:newsml:reuters.com:*:nL2N22K1HM

* This was soon after Iran announced that it was relaxingsome restrictions on its nuclear programme, steps that stoppedshort of violating the deal with world powers for now, butthreatening more action if countries do not shield it from U.S.sanctions.

* Barrick Gold CorpABX.TOGOLD.N , the world'ssecond-largest gold producer, on Wednesday said it remained opento new investments, even as it plans to shed $1.5 billion ofless productive mines. urn:newsml:reuters.com:*:nL2N22K09T

DATA AHEAD (GMT)

* 0130 China PPI YY April

* 0130 China CPI YY April

* 1230 U.S. International Trade March

* 1230 U.S. Initial Jobless Claims Weekly

* 1230 France Reserve Assets Total April (Reporting by Arijit Bose in Bengaluru; Editing by JosephRadford) ((Arijit.Bose@thomsonreuters.com; Within U.S. +1 651 848 5832,Outside U.S. +91 8067495254; Reuters Messaging:Arijit.Bose.thomsonreuters.com@reuters.net))






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



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