PRECIOUS-Gold prices rise as U.S.-China tensions resurface

(Updates prices)
* SPDR gold holdings rose 1.1% on Friday
* Markets await U.S. non-farm payrolls on Friday
* For an interactive graphic tracking the global spread,
open https://tmsnrt.rs/3aIRuz7
in an external browser

By K. Sathya Narayanan
May 4 (Reuters) - Gold prices extended gains on Monday,
having jumped more than 1% in the previous session, as rising
tensions between the United States and China over the
coronavirus' origin bolstered bullion's safe-haven appeal.
Spot gold XAU= gained 0.3% to $1,703.77 per ounce by 0752
GMT in thin trade as markets in China and Japan were closed for
holidays. U.S. gold futures GCcv1 rose 0.9% to $1,715.20.
U.S. Secretary of State Mike Pompeo on Sunday said there was
"a significant amount of evidence" that the coronavirus emerged
from a Chinese laboratory, following President Donald Trump's
remarks on Friday that tariffs on China were "certainly an
option" as he considers ways to retaliate for the outbreak.
"Some sort of fears are there that the trade war might be
ignited and such events are good for gold. All these comments
from officials indicate a new round of hostility as far as the
trade is concerned with China," said Avtar Sandu, a senior
commodities manager at Phillip Futures.
Gold rose 18% last year as the Sino-U.S. trade dispute
increased demand for the safe haven amid interest rates cuts by
the U.S. central bank.
The Federal Reserve has kept interest rates at near zero,
with other central banks and governments taking similar measures
to cushion their economies from the impact of the pandemic.
The widespread fiscal and monetary impetus will support
bullion in the longer term as it is often seen as a hedge
against inflation and currency debasement, analysts said.
However, "U.S. dollar demand is competing for safe-haven
lustre in Asia this morning," said Stephen Innes, chief market
strategist at financial services firm AxiCorp, in a note.
The dollar .DXY moved away from an over one-month low on
Monday, making gold costlier for investors holding other
currencies and limiting bullion's upside. USD/
On the macro front, investors were awaiting U.S. jobs report
for April due on Friday.
"Beyond the rhetoric from Washington we would expect gold to
consolidate until the non-farm payrolls figures are out. A
decline in the (unemployment) numbers wouldn't be good for gold
prices," Phillip Futures' Sandu said.
Reflecting an appetite for gold, holdings in the world's
largest gold-backed exchange-traded fund, SPDR Gold Trust GLD ,
rose 1.1% to 1,067.90 tonnes on Friday. GOL/ETF
Palladium XPD= rose 0.7% to $1,913.33 per ounce, while
platinum XPT= gained 0.1% to $761.19. Silver XAG= was up
0.1% to $14.96.