July 12 (Reuters) - Gold prices rose on Friday and were on track for a weekly gain, as worries over renewed U.S.-China trade tensions and expectations of a rate cut by the Federal Reserve boosted demand for the safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= was up 0.4% at $1,408.62 per ounce as of 0133 GMT. Gold has risen nearly 0.6% so far this week.
* U.S. gold futures GCv1 were up 0.2% at $1,410 an ounce.
* U.S. President Donald Trump said on Thursday that China was not living up to promises it made on buying agricultural products from American farmers. Fed Chair Jerome Powell indicated on Thursday that a rate cut is likely at the Fed's next meeting as businesses slow investment due to trade disputes and a global growth slowdown. Asian shares pulled back on Friday as Sino-U.S. trade tensions weighed on sentiment ahead of the release of June trade data from China. MKTS/GLOB
* Later on Friday, China will release trade data for June, with analysts expecting exports to have fallen as weakening global demand and a sharp hike in U.S. tariffs took a heavier toll on the world's largest trading nation. Meanwhile, the dollar index .DXY steadied on Friday after falling to near one-week low in the previous session, regaining some traction against its peers on stronger U.S. inflation data. USD/
* U.S. core consumer price based inflation in June increased the most in nearly 1-1/2 years. The signs of a pick-up in underlying inflation, along with separate data on weekly jobless claims showing the labour market remained solid, curbed financial market expectations of a more aggressive 50 basis point cut at the Fed's July 30-31 meeting. However, markets are still fully priced for a quarter percentage point cut as U.S. policymakers seek to support a slowing economy.
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DATA AHEAD (GMT)
* 0700 China Exports YY
June
* 0700 China Imports YY
June
* 0700 China Trade Balance USD
June
*
China M2 Money Supply YY
June