June 4 (Reuters) - Gold prices rose on Tuesday, holding near
a more than three-month high hit in the previous session, as
worries over a global recession due to trade conflicts drove
investors to find refuge in safe-haven assets.
FUNDAMENTALS
* Spot gold XAU= was up 0.1% at $1,326.49 per ounce by
0136 GMT, after touching its highest since Feb. 27 at $1,327.90
on Monday.
* U.S. gold futures GCv1 rose 0.3% to $1,332.20 an ounce.
* The Nasdaq confirmed it was in a correction on Monday as
stocks extended their recent sell-off amid the mounting trade
worries. MKTS/GLOB Global stock markets shed over
$2 trillion in value in May.
* U.S. Secretary of State Mike Pompeo said on Monday that
the United States is seeking to "level the playing field" with
China after decades of unfair trade practices, but his Dutch
counterpart said tariffs would hurt international trade.
* Meanwhile, U.S. President Donald Trump said the tariffs
that his administration has imposed on Chinese imports were not
pushing up U.S. inflation and were prompting manufacturers in
the Asian powerhouse to move elsewhere. * U.S. manufacturing growth slowed further in May to its
weakest pace of activity in more than two-and-a-half years,
defying expectations for a modest rebound, a national purchasing
managers' survey showed on Monday. * Mexican officials said that Mexico can reach an agreement
with the United States to resolve a dispute over migration that
prompted U.S. President Donald Trump to threaten punitive
tariffs, as high-level talks were set to begin in Washington.
* U.S. Treasury yields slip to their lowest levels since
September 2017 following remarks from St. Louis Federal Reserve
President James Bullard who said a U.S. rate cut may be
"warranted soon" because of global trade tensions and weak U.S.
inflation. * A gloomy economic outlook is prompting traders to increase
bets that the U.S. Federal Reserve will cut interest rates
sooner rather than later.
* In late U.S. trading, federal funds futures implied
traders saw about a 67% chance the U.S. central bank would
reduce key short-term borrowing costs by a quarter point at its
July 30-31 policy meeting. * Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 2.21% to 759.65 tonnes on
Monday from Friday, its best one-day percentage gain in nearly
three years. GOL/ETF
DATA AHEAD (GMT)
* 0130 Australia Current Account Balance Q1
* 0130 Australia Net Exports Contribution Q1
* 0130 Australia Retail Sales MM April
* 0430 Australia RBA Cash Rate June
* 0900 EU HICP Flash YY May
* 0900 EU HICP-X F&E Flash YY May
* 0900 EU Unemployment Rate April
* 1200 Brazil Industrial Output MM YY April
* 1400 US Factory Orders MM April