July 12 (Reuters) - Gold prices rose on Friday and were on
track for a weekly gain, as worries over renewed U.S.-China
trade tensions and expectations of a rate cut by the Federal
Reserve boosted demand for the safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= was up 0.4% at $1,408.62 per ounce as of
0133 GMT. Gold has risen nearly 0.6% so far this week.
* U.S. gold futures GCv1 were up 0.2% at $1,410 an ounce.
* U.S. President Donald Trump said on Thursday that China
was not living up to promises it made on buying agricultural
products from American farmers. * Fed Chair Jerome Powell indicated on Thursday that a rate
cut is likely at the Fed's next meeting as businesses slow
investment due to trade disputes and a global growth slowdown.
* Asian shares pulled back on Friday as Sino-U.S. trade
tensions weighed on sentiment ahead of the release of June trade
data from China. MKTS/GLOB
* Later on Friday, China will release trade data for June,
with analysts expecting exports to have fallen as weakening
global demand and a sharp hike in U.S. tariffs took a heavier
toll on the world's largest trading nation. * Meanwhile, the dollar index .DXY steadied on Friday
after falling to near one-week low in the previous session,
regaining some traction against its peers on stronger U.S.
inflation data. USD/
* U.S. core consumer price based inflation in June increased
the most in nearly 1-1/2 years. * The signs of a pick-up in underlying inflation, along with
separate data on weekly jobless claims showing the labour market
remained solid, curbed financial market expectations of a more
aggressive 50 basis point cut at the Fed's July 30-31 meeting.
* However, markets are still fully priced for a quarter
percentage point cut as U.S. policymakers seek to support a
slowing economy.
*
DATA AHEAD (GMT)
* 0700 China Exports YY June
* 0700 China Imports YY June
* 0700 China Trade Balance USD June
* China M2 Money Supply YY June