October 7, 2019 / 1:23 AM / 14 days ago

PRECIOUS-Gold rises ahead of U.S.-China trade negotiations

Oct 7 (Reuters) - Gold prices advanced on Monday as markets braced for U.S.-China trade negotiations during the week with lesser hopes of a breakthrough, following a report that Chinese officials may not be as willing to bend.

FUNDAMENTALS

* Spot gold was up 0.3% to $1,508.23 per ounce as of 0101 GMT. Prices had edged 0.5% higher in the previous week on fears of global economic slowdown.

* U.S. gold futures inched 0.1% higher to $1,513.90 an ounce.

* The U.S. dollar against a basket of currencies was a shade lower in early trade. Asian markets too edged lower ahead of the trade talks.

* The next round of U.S-China trade negotiations, likely to be in Washington on Oct. 10-11, will be in focus to see if the two sides can end their year-long trade spat that has upset economic growth around the world and raised concerns of a possible recession.

* U.S. President Donald Trump said on Friday there is a “very good chance” of a trade deal with China.

* However, a report that Chinese officials may be increasingly reluctant to agree to a broad trade deal pursued by Trump has made this uncertain.

* Ruffles in the U.S. political front also supported gold, with a second whistleblower coming forward with knowledge of Trump’s attempts to get the Ukrainian president to investigate a political rival, amid an impeachment battle that threatens the U.S. President’s administration.

* Meanwhile, a report on Friday showed jobs growth in the United States slowed down in September and wage growth stalled, even as unemployment dropped to a 50-year low.

* The unemployment data drop pushed traders of U.S. short-term interest rate futures to pare bets the Federal Reserve will cut rates at both of its two upcoming meetings.

* Elsewhere, twenty people were killed in an attack by suspected jihadists on a gold-mining site in northern Burkina Faso, Senegal on Friday. DATA/EVENTS AHEAD (GMT)

0600 Germany Industrial Orders MM Aug

0645 France Reserve Assets Total Sept

0730 UK Halifax House Prices MM Sept

Reporting by Karthika Suresh Namboothiri in Bengaluru; editing by Uttaresh.V

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