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.
* 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)
Nationwide house price y/y
CPI (EU Norm) Prelim y/y
GDP Quarterly y/y
Consumption, adjusted m/m
(Reporting by Harshith Aranya in Bengaluru; editing by Richard Pullin)
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