CORRECTED-PRECIOUS-Gold jumps 1.5% as yields dropped on global on growth concerns

(Corrects last paragraph to say platinum prices fell 0.2% to
$828.75 an ounce and not rose 0.87% to $1,560.51.)
* SPDR Gold holdings rose 0.78% on Monday
* U.S. threatens tariffs on $4 bln of additional EU goods

By Diptendu Lahiri
July 2 (Reuters) - Gold prices rose 1.5% on Tuesday, a day
after posting the biggest one-day percentage fall in 2-1/2
years, as U.S. Treasury yields fell on worries over global
growth and renewed concerns over global trade.
Spot gold XAU= jumped 1.55% to $1,405.53 per ounce at 1:33
p.m. EDT (1733 GMT), after falling 1.8% on Monday, its biggest
one-day percentage decline since November 2016.
U.S. gold futures GCv1 settled 1.3% higher at $1,408 per
ounce.
"The steady rally in bonds and U.S. dollar unable to
capitalize on Monday's sharp gain is encouraging (gold) bulls.
Prices holding $1,380, the short-term support has helped," said
Tai Wong, head of base and precious metals derivatives trading
at BMO.
U.S. yields were also pressured by a drop in British yields
to 2-1/2-year lows after Bank of England Governor Mark Carney
cited risks from Brexit and trade conflicts in a speech that
prompted speculation the BOE may lower interest rates in the
next 12 months. US/N
White House trade adviser Peter Navarro said on Tuesday U.S.
trade talks with China are heading in the right direction and it
will take time to get the right deal made. The U.S. government also threatened tariffs on $4 billion of
additional European Union goods in a long-running dispute over
aircraft subsidies. "The trade fiasco could be a positive factor for gold as the
deal is still not reached yet," said Carlo Alberto De Casa,
chief analyst with ActivTrades. "The stock markets are in the
red, which is another positive thing for gold."
Data showed manufacturing activity slowed last month,
weakening appetite for risk. MKTS/GLOB
Gold prices hit a six-year high last week at $1,438.63 an
ounce on dovish outlooks from major central banks and an
escalation of U.S.-Iran tensions. The market is focusing on U.S. non-farm payrolls data due on
Friday, which should help investors better assess whether the
Fed will cut interest rates later this month.
"Upcoming U.S. economic numbers and Federal Reserve
speakers' comments are critical as we approach the Federal Open
Market Committee meeting at the end of July," UBS analysts said
in a note.
"The potential for renewed trade tensions and broader
geopolitical risks, in our view, is likely to spur further
inflows into gold by financial investors."
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.78% to 800.20 tonnes on
Monday. Silver XAG= was up 0.47% at $15.21 per ounce, while
palladium XPD= rose 0.87% to $1,560.51 per ounce.
Platinum XPT= fell 0.2% to $828.75 an ounce, after
touching a near seven-week high on Monday.