Gold prices inch down on positive signs for trade talks

Aug 30 (Reuters) - Gold prices dipped on Friday as the United States and China indicated they may resume talks to resolve their protracted trade conflict, putting the metal on track for a small weekly loss despite a strong month.

FUNDAMENTALS

* Spot gold XAU= fell 0.2% to $1,525.06 per ounce, as of 0112 GMT.

* For the month, bullion is set to rise 7.9%. However, for the week, it's headed for a mild loss of 0.1%, following four weeks of gains.

* U.S. gold futures GCv1 were also down 0.2% at $1,534.50 an ounce.

* China's commerce ministry said on Thursday Beijing and Washington were discussing the next round of face-to-face talks scheduled for September, but added it was important for Washington to cancel a tariff increase.

* U.S. President Donald Trump also said some discussions were taking place on Thursday, ahead of a looming deadline for additional U.S. tariffs on Sept. 1.

* Wall Street and Asian stock markets rose in response to the potential softening in the Sino-U.S. trade war. MKTS/GLOB

* The Trump administration on Wednesday made official its extra 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15.

* The dollar index =USD, which measures the greenback against a basket of six major currencies, touched a peak last hit on Aug. 1. USD/

* Christine Lagarde, the European Central Bank's next president, said on Thursday the bank still has room to cut interest rates if needed, although this may pose financial stability risk.

* Markets are fully priced in for a quarter-point cut in interest rates by the U.S. Fed next month, and over 100 basis points of easing by the end of next year. FEDWATCH

* Data on Thursday showed that German inflation slowed in August and unemployment rose, cementing expectations of a new ECB stimulus package next month.

* Investors are also focused on a string of economic releases due over the weekend including China's official manufacturing survey which would provide a good gauge of the real impact from the Sino-U.S. trade war. MKTS/GLOB

* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 880.36 tonnes on Thursday from Wednesday. GOL/ETF

* U.S. Treasury yields rose overnight with the benchmark 10-year Treasury climbing up from a three-year low touched earlier this week. US/

DATA AHEAD (GMT)

0600

UK

Nationwide house price y/y

0645

France

CPI (EU Norm) Prelim y/y

0900

Euro zone

Unemployment Rate

1200

India

GDP Quarterly y/y

1230

US

Consumption, adjusted m/m

(Reporting by Harshith Aranya in Bengaluru; editing by Richard Pullin)

((harshith.aranya@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6462; Reuters Messaging: harshith.aranya.thomsonreuters.com@reuters.net))

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