PRECIOUS-Gold firm as investors await clarity on Trump's tariff plan

Published 2018-03-08, 03:10 a/m
© Reuters.  PRECIOUS-Gold firm as investors await clarity on Trump's tariff plan
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* Spot gold may fall to $1,318/oz - technicals

* ECB policy decision due on Thursday; U.S. jobs data onFriday

* Platinum off 2-mth lows hit on Wednesday (updates prices)

By Sethuraman N R

March 8 (Reuters) - Gold prices held steady on Thursday asinvestors awaited more details on U.S. President Donald Trump'sproposed steel and aluminium tariffs, the outcome of theEuropean Central Bank's policy meeting, and U.S. jobs data.

Spot gold XAU= rose 0.2 percent to $1,328.81 per ounce by0804 GMT. It hit a one-week high on Wednesday at $1,340.42,before closing lower at $1,325.49 an ounce.

U.S. gold futures GCcv1 were up 0.1 percent at $1,329.

"We see gold as a good hedge against rising equity marketvolatility and heightened political risks around trade tariffs,the NAFTA deal and North Korea," ANZ analysts said in a note.

Asian shares found some relief on Thursday as fears about aglobal trade war amid Trump's push to introduce protectionisttariffs were tempered by signs that the move could includecarve-outs for key partners. The White House said late Wednesday that Canada, Mexico andpossibly other countries may be exempted at least for a whilefrom the proposed steel and aluminium tariffs. is expected to sign a presidential proclamationestablishing the tariffs during a ceremony scheduled for 2030GMT on Thursday, a source familiar with the situation said.

"Gold is going to be choppy here and remain in rangebound trading ... It is finding some support in the downside around$1,300 levels due to safe haven demand," said Peter Fung, headof dealing at Wing Fung Precious Metals in Hong Kong.

Investors are also awaiting U.S. non-farm payroll data dueon Friday for more clarity on the pace of U.S rate hikes.

Businesses are reporting persistent labour market tightnessacross the United States, with accelerating wage gains in manyregions, the Federal Reserve said on Wednesday in a report thatbolstered the case for interest rate increases. the medium-term, gold will come under some pressure frominterest rate hikes and will recover as it has done in thepast," Fung said.

The European Central Bank is all but certain to keep policyunchanged on Thursday but may tweak its communication stance tooffer at least a few clues about its progress towards ending itsunprecedented bond purchases later this year. holdings of SPDR Gold Trust GLD , the world'slargest gold-backed exchange-traded fund, fell 0.03 percent to833.73 tonnes on Wednesday from Tuesday. GOL/ETF

Spot silver XAG= rose 0.4 percent to $16.55 an ounce.Platinum XPT= was down 0.1 percent at $951.80, after hittingits lowest since Jan. 4 at $945.70 in the previous session.

Palladium XPD= edged up 0.4 percent to $972, afterdropping to its lowest since Feb. 9 at $961.55 on Wednesday.

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