September 18, 2018 / 1:02 AM / a month ago

PRECIOUS-Gold slips as new U.S. tariffs on China lifts dollar

BENGALURU, Sept 18 (Reuters) - Gold prices inched lower early on Tuesday, after rising 0.6 percent in the previous session, as the dollar rose after the United States imposed a new round of tariffs on Chinese imports, aggravating global trade worries.

FUNDAMENTALS

* Spot gold fell 0.1 percent at $1,199.20 an ounce as of 0027 GMT.

* U.S. gold futures were down 0.2 percent at $1,203.90.

* U.S. President Donald Trump on Monday imposed 10 percent tariffs on about $200 billion worth of Chinese imports.

* Trump also warned that if China takes retaliatory action against U.S. farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports."

* The months-long trade rift between Washington and Beijing has prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute.

* The dollar index, which measures the greenback against a basket of currencies, was up 0.1 percent at 94.582.

* China's yuan was 0.25 percent lower at 6.8862 per dollar in offshore trade.

* Gold prices have declined over 12 percent from April amid intensifying global trade tensions and under pressure from rising U.S. interest rates.

* Hedge funds and speculators have swung sharply toward pricing in higher rates and yields at the short end of the curve, a sign that they are backing down and now think the Fed will stick to the pace and path of rate hikes it has long flagged.

* Bond traders are increasing bets the Federal Reserve will raise U.S. short-term interest rates into 2019 as the jobs market tightens and with inflation seen climbing above its 2 percent goal.

* South Africa's competition watchdog on Monday approved the takeover of platinum producer Lonmin, by Sibanye-Stillwater but imposed conditions to limit job losses.

* Russia raised gold holdings by 28.367 tonnes to 1,998.538 tonnes in 2018 August, International Monetary Fund data showed.

* Three South African unions have signed a three-year wage deal with AngloGold Ashanti, potentially inching the country's gold industry closer to ending a standoff over pay.

* India may impose import duty on gold, local media reported on Monday.

DATA AHEAD (GMT)

1400 U.S. NAHB housing market index Sep (Reporting by Nallur Sethuraman in Bengaluru; Editing by Amrutha Gayathri)

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