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PRECIOUS-Gold prices ease as Trump's trade concession lifts equities

Published 2019-08-14, 03:34 a/m
PRECIOUS-Gold prices ease as Trump's trade concession lifts equities
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* SPDR Gold holdings slipped 1.3% on Tuesday

* China July industrial output growth weakest in 17 years

* Spot gold may retest support at $1,480/oz - techs (Updates prices)

By Brijesh Patel

Aug 14 (Reuters) - Gold prices edged lower on Wednesday after the United States delayed tariffs on some Chinese imports, easing trade concerns, although political uncertainties and lingering global growth concerns limited losses for the safe-haven metal.

Spot gold XAU= was down 0.1% at $1,499.89 per ounce, as of 0716 GMT.

U.S. gold futures GCcv1 were down 0.2% at $1,510.80 an ounce.

"Easing in trade tensions, geopolitical risks have provided some sort of hope in the markets which boosted equities, because of this there is a brief pullback in gold prices," said John Sharma, an economist with National Australia Bank.

"However, the trade dispute is still not resolved. Geopolitical risks in Hong Kong, trends in global growth and we are also expecting at least one more cut from the Federal Reserve. All these factors are supportive for gold," Sharma added.

U.S. President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting the impact on U.S. holiday sales. reprieve in the trade dispute between the world's biggest economies provided relief for financial markets gripped by political and economic turmoil, as Asian shares joined a global equities rally on Wednesday. MKTS/GLOB markets are starved for a bit of good news. China said it would hold trade talks by phone in two weeks, and the U.S. saying it will delay some of the tariffs have driven a wave of profit-taking across safe-haven assets," Stephen Innes, managing partner, VM Markets wrote in a note.

Meanwhile, China's closely watched industrial output rose in July at the slowest pace in more than 17 years, official data showed on Wednesday, in the latest sign of faltering demand as the United States ramps up trade pressure. focus shifts to the U.S. Federal Reserve's annual symposium next week for clues on the future trajectory of interest rates. Traders see a 86.2% chance of a 25 basis-point rate cut by the U.S. central bank this September. FEDWATCH

Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.

The dollar index .DXY was relatively unchanged against a basket of major currencies on Wednesday, after rising 0.4% overnight. USD/

Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 1.3% to 836.66 tonnes on Tuesday from Monday. GOL/ETF

Spot gold may retest a support at $1,480, following its failure to break a resistance at $1,524 per ounce, said Reuters technical analyst Wang Tao. XAG= eased 0.1% to $16.95 per ounce, after hitting a more than one-and-a-half-year high in the previous session.

Platinum XPT= slipped 0.5% to $847.92 an ounce and palladium XPD= dipped 0.8% to $1,444.16 an ounce.

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