PRECIOUS-Gold slips as U.S.-China trade row supports dollar

Reuters

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    * SPDR Gold holdings fell for fifth session last week
    * Platinum at three-week low
    * U.S. dollar at near six-week high

 (Updates prices)
    By K. Sathya Narayanan
    Feb 11 (Reuters) - Gold fell on Monday as investors looked
to the safety of the dollar to stave off risks from the U.S.-
China trade spat, as concerns mounted over a slowdown in global
growth.
    Spot gold  XAU=  was down 0.6 percent at $1,306.71 per ounce
at 1222 GMT, after having risen for the previous two sessions.
    U.S. gold futures  GCv1  also declined 0.6 percent to
$1,310.70 per ounce.
    "The dollar seems to be the main beneficiary of the fears of
economic slowdown, pushing gold down," said Mitsubishi analyst
Jonathan Butler.
    "But gold has managed to be above $1,300 level, which is a
fairly solid and decent support level since there are some
downward pressures right now."
    The dollar index  .DXY  was at a near six-week high, making
the greenback-denominated gold more expensive for holders of
other currencies.  USD/ 
    The dollar has risen despite the Federal Reserve pausing its
multi-year rate hike cycle and dovish comments from several Fed
officials, which pushed gold to a nine-month high at $1,326.30
in late January.  urn:newsml:reuters.com:*:nL1N2031AV
    While gold is supported by the Fed's policy, prices will
likely remain range-bound until there is clarity on the trade
front and U.S. government shutdown, OANDA analyst Edward Moya
said in a note.
    Investors' focus will be back on the trade talks between
Beijing and Washington this week as a delegation of U.S.
officials travels to China for the next round of negotiations.
 urn:newsml:reuters.com:*:nL3N20614C
    U.S. President Donald Trump said last week that he had no
plans to meet with Chinese President Xi Jinping before a March 1
deadline to achieve a trade deal.  urn:newsml:reuters.com:*:nL1N2020Z6
    Also, In the latest development surrounding political
gridlock in Washington, talks on border security funding
collapsed after Democratic and Republican lawmakers clashed over
immigrant detention policy as they worked to avert another U.S.
government shutdown.  urn:newsml:reuters.com:*:nL1N20503N
    "Global growth worries, absence of positive signs in
U.S-China trade negotiations and reduction in the euro-zone
growth forecasts have laid a strong foundation for gold," said
Benjamin Lu, an analyst with Singapore-based Phillip Futures.
    Adding to a string of disappointing global economic data,
especially in the euro zone, official figures on Monday showed
Britain's economy slowed as expected in the final three months
of last year, pushing growth in 2018 to its weakest in six
years, as Brexit worries hammered investment.  urn:newsml:reuters.com:*:nL9N1SF00Q
    Meanwhile, holdings of the SPDR Gold Trust  GLD , the
world's largest gold-backed exchange-traded fund, saw outflows
for five straight sessions last week.  GOL/ETF 
    Among other precious metals, palladium  XPD=  fell 0.9
percent to $1,390 an ounce.
    Spot silver  XAG=  dropped 0.7 percent to $15.71, while
platinum  XPT=  was down 1.3 percent at $788 per ounce, after
touching its lowest in three weeks.

 (Reporting by K. Sathya Narayanan in Bengaluru; editing by
David Evans)
 ((Sathya.Narayanan@thomsonreuters.com; within U.S. +1 651 848
5832, outside U.S. +91 80 6749 3226/1298; Reuters Messaging:
sathya.narayanan.thomsonreuters.com@reuters.net))

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