PRECIOUS-Gold prices edge higher on recession worries, trade uncertainty

* SPDR Gold holdings up 6.6% so far in August
* U.S. Fed, ECB expected to cut rates next month
* Gold may rise to $1,568/oz before falling -techs

(Adds fresh comments, updates prices)
By Harshith Aranya
Aug 29 (Reuters) - Gold prices eked out gains on Thursday as
recession fears dented risk sentiment, with traders tracking the
latest on a bruising U.S.-China trade war as well as global
central banks for direction on interest rates.
Spot gold XAU= rose 0.3% to $1,542.77 per ounce, as of
0754 GMT.
U.S. gold futures GCv1 were up 0.2% at $1,552.70 an ounce.
"Gold is taking strength from the impression that trade
attitudes are hardening, and that China is likely to be less
flexible after the way (U.S.) President Trump has changed his
mind and message over the last few days," said Nicholas
Frappell, global general manager at ABC Bullion.
On the trade front, the Trump administration on Wednesday
made official its extra 5% tariff on $300 billion in Chinese
imports, and set collection dates of Sept. 1 and Dec. 15.
While Trump in recent days has toned down his aggressive
China trade rhetoric, it has not translated to a retreat from
the planned tariff hikes. It remains unclear whether U.S. and
Chinese negotiators will resume in-person talks in September as
previously suggested by U.S. officials. Adding to the uncertainty was British Prime Minister Boris
Johnson's move to suspend parliament for more than a month
before Brexit. Underscoring the gloomy global sentiment, yields on 30-year
U.S. Treasuries and 10-year German bunds hit record lows on
Wednesday. US/
The U.S. Treasury yield curve remains inverted, which is
commonly considered a sign of an impending recession.
"There are very broad expectations all around the globe that
the next move from the central banks would be a rate cut," said
Michael McCarthy, chief market strategist at CMC Markets, adding
that this is very supportive of gold.
The U.S. Federal Reserve and the European Central bank are
expected to cut rates next month, while many investors believe
the Bank of Japan could also join the fray if market sentiment
weakens further. MKTS/GLOB
Gold tends to appreciate on expectations of lower interest
rates, which reduce the opportunity cost of holding non-yielding
bullion.
Markets are fully priced in for a quarter-point cut in
interest rates by the U.S. Fed next month, and over 100 basis
points of easing by the end of next year. FEDWATCH
Indicative of market sentiment, holdings of the SPDR Gold
Trust GLD , the world's largest gold-backed exchange-traded
fund, have increased by 6.6% this month. GOL/ETF
Gold is biased to break a resistance at $1,546 per ounce and
thrust to $1,568 before reversing the uptrend, according to
Reuters technical analyst Wang Tao. The dollar index .DXY , which measures the greenback
against a basket of six major currencies, was little changed
after rising 0.2% in the previous session. USD/
Elsewhere, silver XAG= rose 1.2% to $18.56 per ounce, its
highest since April 2017.
Platinum XPT= rose 1.5% to $913.86, while palladium XPD=
was up 1.1% to $1,485.71 per ounce.

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