(Corrects paragraph 1 to say gradual 'de-escalation' not
'progress' in U.S.-China trade tensions)
Sept 12 (Reuters) - Gold prices fell on Thursday as equities
gained on improving risk sentiment buoyed by signs of gradual
de-escalation in U.S.-China trade tensions, while investors eyed
European Central Bank's meeting for cues on monetary policy
easing.
FUNDAMENTALS
* Spot gold XAU= fell 0.4% to $1,491.86 per ounce at 0117
GMT.
* U.S. gold futures GCv1 were down 0.3% at $1,499.5 an
ounce.
* Asian stocks rose on hopes for a thaw in U.S.-China trade
frictions and expectations that the ECB will kick off another
wave of monetary easing by global central banks. USD/
MKTS/GLOB
* U.S. President Donald Trump on Wednesday welcomed China's
decision to exempt some U.S. anti-cancer drugs and other goods
from its tariffs and announced a delay to scheduled tariff hikes
on billions worth of Chinese goods. * Trump called on the "boneheads" at the Federal Reserve to
push interest rates down into negative territory, a move
reluctantly used by other central banks to battle weak economic
growth that risks punishing savers and banks' earnings.
* U.S. producer prices unexpectedly rose in August, but the
overall trend in producer inflation remains tame, cementing
financial market expectations that the Federal Reserve will cut
interest rates again next week to support a slowing economy.
* The ECB is set to unveil fresh stimulus measures on
Thursday to prop up the ailing euro zone economy, but its exact
moves are far from certain and a decision that underwhelms
markets risks, pushing up borrowing costs. * The ECB announces its rate decision at 1145 GMT, followed
by ECB President Mario Draghi's news conference at 1230 GMT.
* The British government's plans for a no-deal Brexit warn
of severe disruption to cross-Channel routes, affecting the
supply of medicines and certain types of fresh foods, and say
that protests and counter-protests will take place across the
country, accompanied by a possible rise in public
disorder. AHEAD
0600 Germany HICP Final YY Aug
0645 France CPI (EU Norm) Final MM, YY Aug
1145 EU ECB Refinancing Rate Sept
1145 EU ECB Deposit Rate Sept
1200 India Industrial Output YY July
1230 US CPI MM, SA Aug
1230 US Initial Jobless Claims Weekly