June 12 (Reuters) - Gold prices steadied on Wednesday after
touching a one-week low in the previous session, buoyed by
concerns around U.S.-China trade relations amid expectations of
an interest rate cut by the U.S. Federal Reserve.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,326.90 as of 0115 GMT,
after falling to its lowest since June 3 at $1,319.35 in the
previous session.
* U.S. gold futures GCv1 were also steady at $1,330.70 an
ounce.
* U.S. President Donald Trump on Tuesday defended the use of
tariffs as part of his trade strategy, while China vowed a tough
response if the United States insists on escalating trade
tension amid ongoing negotiations. * Trump said that he was holding up a trade deal with China
and had no interest in moving ahead unless Beijing agrees again
to four or five "major points," which he did not specify.
* He also took an aim at the U.S. Federal Reserve, saying
interest rates were "way too high" and the central bank had "no
clue".
* Fed policymakers will meet on June 18-19 against the
backdrop of rising trade tensions, slowing U.S. growth and a
sharp step-down in hiring in May that have led markets to price
in at least two rate cuts by the end of 2019.
* Asian share markets got off to a cautious start on
Wednesday as the White House took a tough line on a trade deal
with China, just as investors were bracing for the latest batch
of economic data from the Asian giant. MKTS/GLOB
* A drop in two-year treasury prices flattened the yield
curve on Tuesday after a Labor Department report showed producer
prices increased in May for the second consecutive month,
pointing to a steady pick-up in underlying inflation pressures.
US/
* Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.03% to 756.18 tonnes on
Tuesday from 756.42 tonnes on Monday. DATA AHEAD (GMT)
* 1230 U.S. Core CPI YY, NSA May
* 1230 U.S. CPI MM, SA May
* 1230 U.S. CPI YY, NSA May