May 7, 2019 / 1:54 AM / 13 days ago

PRECIOUS-Gold gains as "Tariff-Man" Trump dents trade hopes, risk sentiment

May 7 (Reuters) - Gold prices rose on Tuesday amid U.S. President Donald Trump’s decision to hike tariffs on Chinese imports, which re-escalated trade tension and pushed investors to seek insurance in the safe-haven asset.

FUNDAMENTALS

* Spot gold was up 0.2 percent at $1,282.11 per ounce as of 0147 GMT.

* U.S. gold futures were unchanged at $1,283.60 an ounce.

* China backtracked on substantial commitments it had made during trade talks with the United States, prompting President and self proclaimed “tariff-man” Donald Trump to impose additional tariffs on Chinese goods slated to go into effect on Friday, top U.S. trade officials said on Monday.

* Trump’s announcement comes in stark contrast to his views from the past week, where he lauded progress between the two countries on the trade front.

* Asian shares wallowed near five-week lows on early Tuesday after U.S. President Donald Trump’s threat to raise tariffs re-ignited worries about U.S.-China trade tensions while Japan’s Nikkei opened down after a 10-day break.

* The U.S. dollar slipped to a five-week low against the yen and fell versus other currencies on Monday after Trump’s decision on tariffs.

* However, China said on Monday that a delegation was still preparing to go to the United States for trade talks, despite Trump’s dramatically increased pressure on Beijing to reach a deal, stoking hopes that Trump’s threat may not culminate into action.

* India raised gold holdings by 3.733 tonnes to 612.587 tonnes in March, data from the International Monetary Fund (IMF) showed on Monday.

* Meanwhile, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16 percent to 739.64 tonnes on Monday from 740.82 tonnes on Friday.

DATA AHEAD (GMT)

* 0600 Germany Industrial Orders MM March

* 0730 UK Halifax House Prices MM April

* 1300 Russia CPI MM April

* 1300 Russia CPI YY April (Reporting by Arijit Bose in Bengaluru; editing by Uttaresh.V)

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