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PRECIOUS-Gold prices hold firm on trade, growth concerns

Feb 11 (Reuters) - Gold prices held steady on Monday,supported by uncertainties around Sino-U.S. trade war andconcerns of slowing global economic growth, while a strongdollar weighed on the precious metal.

FUNDAMENTALS

* U.S. gold futures GCv1 were also firm at $1,317 perounce.

* World stocks .MIWD00000PUS ended last week in the redamid uncertainty about global economic growth and tradetensions, posting their first weekly drop this year. MKTS/GLOB

* Investors are looking ahead to trade talks this week witha delegation of U.S. officials travelling to China for the nextround of negotiations. U.S. President Donald Trump said lastweek that he had no plans to meet with Chinese President XiJinping before a March 1 deadline to achieve a trade deal.

* Trump has vowed to increase U.S. tariffs on $200 billionworth of Chinese imports to 25 percent from 10 percent currentlyif the two sides cannot reach a deal by 12:01 a.m. (0501 GMT) onMarch 2.

* Trade tensions between the two largest economies of theworld have rattled financial markets since last year.

* Adding to investor worries was the collapse in talksbetween U.S. Democrat and Republican lawmakers over the weekendamid a clash over immigrant detention policy, raising fears ofanother government shutdown.

* The European Commission sharply downgraded euro zonegrowth this year and next.

* Tighter financial conditions since last September makefurther interest rate hikes seem much less necessary than just afew months ago, San Francisco Federal Reserve Bank PresidentMary Daly said on Friday.

* Federal Reserve Chairman Jerome Powell is expected totestify on U.S. monetary policy and the economy before the HouseFinancial Services Committee on Wednesday.

* The dollar index .DXY was marginally higher and hoveringnear more than one-month highs touched in the previous session. USD/

* A stronger greenback makes dollar-denominated gold moreexpensive for holders of other currencies.

* Demand for physical gold in India rose last week asjewellers stocked up for a major exhibition, allowing dealers tocut discounts to the lowest in two months, while the Lunar NewYear holiday kept activity subdued in other major Asian hubs.

* Scrap gold supplies in India, the world's second-biggestconsumer of bullion, may increase this quarter as a rally inlocal gold prices has prompted consumers to sell old trinketsand jewellery.

* SPDR Gold TrustGLD , the world's largest gold-backedexchange-traded fund, saw outflows for five straight sessionslast week. GOL/ETF

* Venezuela's most successful financial operations in recentyears have not taken place on Wall Street, but in primitivegold-mining camps in the nation's southern reaches.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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