(Corrects last paragraph to say platinum prices fell 0.2% to $828.75 an ounce and not rose 0.87% to $1,560.51.)
* SPDR Gold holdings rose 0.78% on Monday
* U.S. threatens tariffs on $4 bln of additional EU goods
By Diptendu Lahiri
July 2 (Reuters) - Gold prices rose 1.5% on Tuesday, a day after posting the biggest one-day percentage fall in 2-1/2 years, as U.S. Treasury yields fell on worries over global growth and renewed concerns over global trade.
Spot gold jumped 1.55% to $1,405.53 per ounce at 1:33 p.m. EDT (1733 GMT), after falling 1.8% on Monday, its biggest one-day percentage decline since November 2016.
U.S. gold futures settled 1.3% higher at $1,408 per ounce.
“The steady rally in bonds and U.S. dollar unable to capitalize on Monday’s sharp gain is encouraging (gold) bulls. Prices holding $1,380, the short-term support has helped,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
U.S. yields were also pressured by a drop in British yields to 2-1/2-year lows after Bank of England Governor Mark Carney cited risks from Brexit and trade conflicts in a speech that prompted speculation the BOE may lower interest rates in the next 12 months.
White House trade adviser Peter Navarro said on Tuesday U.S. trade talks with China are heading in the right direction and it will take time to get the right deal made.
The U.S. government also threatened tariffs on $4 billion of additional European Union goods in a long-running dispute over aircraft subsidies.
“The trade fiasco could be a positive factor for gold as the deal is still not reached yet,” said Carlo Alberto De Casa, chief analyst with ActivTrades. “The stock markets are in the red, which is another positive thing for gold.”
Data showed manufacturing activity slowed last month, weakening appetite for risk.
Gold prices hit a six-year high last week at $1,438.63 an ounce on dovish outlooks from major central banks and an escalation of U.S.-Iran tensions.
The market is focusing on U.S. non-farm payrolls data due on Friday, which should help investors better assess whether the Fed will cut interest rates later this month.
“Upcoming U.S. economic numbers and Federal Reserve speakers’ comments are critical as we approach the Federal Open Market Committee meeting at the end of July,” UBS analysts said in a note.
“The potential for renewed trade tensions and broader geopolitical risks, in our view, is likely to spur further inflows into gold by financial investors.”
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.78% to 800.20 tonnes on Monday.
Silver was up 0.47% at $15.21 per ounce, while palladium rose 0.87% to $1,560.51 per ounce.
Platinum fell 0.2% to $828.75 an ounce, after touching a near seven-week high on Monday. (Reporting by Diptendu Lahiri and Nallur Sethuraman in BengaluruEditing by Susan Thomas)