PRECIOUS-Gold heads for fourth monthly gain on slowdown, trade worries

* Silver eyes biggest monthly percentage gain since June
2016
* Gold heads towards fourth straight monthly gain

(Updates prices)
By Asha Sistla
Aug 30 (Reuters) - Gold prices fell on Friday on a slight
recovery in equities markets and Treasury yields but was on
track for a fourth-straight monthly gain as fears of a global
recession and uncertainty on U.S.-China trade relations drove
investors to safe havens.
Spot gold XAU= fell 0.5% to $1,520.40 per ounce at 1:29
p.m. EDT (1729 GMT) and has gained 7.4% so far this month.
U.S. gold futures GCcv1 settled down 0.5% at $1,529.40.
The market is awaiting news on the trade front, said Suki
Cooper, precious metals analyst at Standard Chartered Bank.
"At the moment, gold market is focused on impact in terms of
global growth and whether we'll continue to see central banks
around the world easing monetary policy," Cooper added.
Chinese and U.S. trade negotiating teams are maintaining
effective communication, a day after both sides discussed the
next round of in-person negotiations in September, China's
foreign ministry said on Friday. On Thursday, China's commerce ministry said a September
round of meetings was being discussed by the two sides, but
added it was important for Washington to cancel a tariff
increase.
Positive signs on the trade front also lifted world stocks
to a one-week high, limiting bullion's upside. MKTS/GLOB
"Gold will have a very high beta to any reduction in trade
tensions given that they have driven so much of its rally,"
OANDA analyst Jeffrey Halley wrote in a note.
Escalation in the trade war between the world's biggest
economies and heightened fears over a global downturn
contributed to a rise of more than $100 for gold in August.
A recent inversion of the U.S. yield curve, where
short-dated yields are running above long-dated ones, has also
unsettled investors as it often precedes a recession. US/
Meanwhile, the U.S. Federal Reserve and the European Central
bank are widely expected to cut rates next month to stimulate
their economies.
Elsewhere, silver XAG= fell 0.2% to $18.21 per ounce, on
track for its biggest monthly percentage gain since June 2016,
gaining 12% so far in August.
"Silver will be volatile going forward and is more likely to
come under pressure when we see prices rising given that the
industrial picture looks a little bit weak going forward,"
Standard Chartered's Cooper said.
Meanwhile, consumers in top Asian hubs sold physical gold
holdings this week to cash in on high prices, with many opting
for cheaper silver. GOL/AS
Spot platinum XPT= rose 1.3% to $928.05 per ounce, after
hitting a near 16-month high, while palladium XPD= jumped 4.1%
to $1,535.45 per ounce after hitting a one-month peak of
$1,504.71 earlier.