PRECIOUS-Gold rises on trade deal uncertainty, economic slowdown, HK violence

* Chinese PPI falls 1.6% in October
* SPDR Gold holdings fell 1.4% on Friday
* Gold up nearly 14% this year

(Adds comments; updates prices)
By Diptendu Lahiri
Nov 11` (Reuters) - Gold recovered slightly on Monday from
the previous session's three-month low, with buying driven by
concerns over the global economy, uncertainty over whether the
United States and China will reach a trade deal, and the
mounting violence in Hong Kong.
Spot gold XAU= was up 0.3% at $1,463.42 per ounce at 0811
GMT, while U.S. gold futures GCv1 were up 0.2% at $1,465.70
per ounce.
"Gold prices are pretty low now and investors are taking
this opportunity to take positions in the safe-haven metal as
there is still an upside to it, considering the concerns over
the trade war and global economy," said Brian Lan of Singapore
dealer GoldSilver Central.
Gold buying by central banks, especially in China, is also
boosting prices, Lan added. Investors also noted the worsening violence in Hong Kong,
where police shot and wounded one anti-government protester on
Monday, as the Chinese-ruled territory endured its 24th straight
week of pro-democracy unrest. "Prices are going through a technical bounce back from the
recent lows and the geopolitical tensions in Hong Kong are
providing further boost," said Hareesh V, head of commodity
research at Geojit Financial Services.
On the trade front, talks with China were moving along "very
nicely," U.S. President Donald Trump said on Saturday, but the
United States would only make a deal with Beijing if it was the
right one for America. Washington and Beijing had agreed to roll back tariffs as
part of the first phase of a trade deal, but Trump later denied
any such agreement. The trade war has roiled financial markets and spurred fears
of a global economic slowdown, pushing the precious metal up 14%
this year.
If the world's two largest economies fail to reach a deal to
end their trade war it could push prices to the $1,500-level,
said Lan.
Fanning concerns over global growth, China's producer price
index (PPI), partly seen as a guide to trends in corporate
profitability, fell 1.6% in October from a year earlier, its
steepest decline since July 2016, outstripping analysts'
expectation for a contraction of 1.5%. "Gold's next technical support is at $1,450, after which the
charts open wide until $1,400 an ounce," OANDA analyst Jeffrey
Halley said in a note.
Asian shares sank on Monday as uncertainty still remained
over whether the United States and China could end their
damaging trade war. MKTS/GLOB
SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 1.44% to 901.19
tonnes on Friday. GOL/ETF
Elsewhere, silver XAG= was up 0.5% at $16.88 per ounce,
platinum XPT= was flat at $887.41 per ounce and palladium
XPD= rose 0.2% to $1,745.74 an ounce.