PRECIOUS-Gold gains as global trade worries lift safe-haven appetite

* SPDR Gold holdings fell 0.22% on Tuesday
* Gold hits $1,435.99/oz, a peak since June 25

(Adds quote, details, and updates prices)
By Harshith Aranya and Eileen Soreng
July 3 (Reuters) - Gold prices touched a one-week high on
Wednesday, driven by upbeat safe-haven sentiment as hopes of a
quicker resolution of the U.S.-China trade dispute ebbed, while
a potential trade feud with Europe deepened concerns over tepid
economic growth.
Spot gold XAU= was up 0.5% at $1,425.64 per ounce, as of
0711 GMT. Earlier in the session, the bullion hit $1,435.99, a
peak since June 25.
U.S. gold futures GCv1 rose 1.5% to $1,429.30 an ounce.
Extended weakness in global manufacturing data and U.S.
trade protectionism looked poised to support the bullion's
appeal as investors avoided riskier assets, said Benjamin Lu,
analyst, Phillip Futures.
Just days after reaching a truce on China trade, the U.S.
Trade Representative's office turned to Europe on Monday in a
long-running dispute over aircraft subsidies, adding extra
products to a list of EU goods that may be hit with tariffs.
The market also grew wary of the chances of a quick
resolution to the year-long U.S.-China trade war after U.S.
President Donald Trump's comments that any deal would have to be
tilted in favour of Washington. Asian shares fell amid trade concerns and global growth
worries. The dollar also struggled for traction, while U.S. bond
yields fell to their lowest levels since late 2016. USD/
MKTS/GLOB
U.S. yields were also pressured by a drop in British yields
after Bank of England Governor Mark Carney flagged uncertainties
over Brexit and trade conflicts that prompted speculation that
the central bank may lower interest rates, on the heels of other
major central banks such as the U.S. Federal Reserve and the
European Central Bank.
Major central banks are advocating lower interest rates and
that provides an underlying strength to gold prices, said
Vandana Bharti, assistant vice-president of commodity research
at SMC Comtrade.
"Gold prices are on a path to get some correction ...
Investors should buy on dips."
Investors will now focus on the release of U.S. economic
data including non-farm payrolls on Friday, to better assess
whether Fed will cut interest rates later this month.
"Technically gold remains positive," said Jigar Trivedi, a
commodities analyst at Mumbai-based Anand Rathi Shares & Stock
Brokers, adding there is a strong resistance around
$1,435-$1,440 zone, while $1,410-$1,400 is a very good support
for near term.
SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings dipped 0.2% to 798.44
tonnes on Tuesday. Silver XAG= rose 0.2% to $15.33 per ounce.
Platinum XPT= climbed 0.4% to $830.82 per ounce, while
palladium XPD= was also up 0.4% at $1,563.66 per ounce, having
touched an over three-month peak of $1,568 earlier in the
session.