July 2, 2019 / 1:44 AM / 4 months ago

PRECIOUS-Gold gains as weak economic data hints at global slowdown

July 1 (Reuters) - Gold prices rose on Tuesday buoyed by a safe-haven sentiment emanating from weak global manufacturing data that hinted at an economic slowdown, a day after the metal declined more than 1% on expectations of a U.S.-China trade truce.

FUNDAMENTALS

* Spot gold was up 0.4% at $1,389.49 per ounce at 0111 GMT.

* Prices fell about 1.8% on Monday, its biggest one-day percentage decline since November 2016. They had touched a more than one-week low of $1,381.51 per ounce.

* U.S. gold futures were up 0.2% at $1,391.70 an ounce.

* Factory activity shrank across much of Europe and Asia in June while growth in manufacturing cooled in the United States, keeping the world's policymakers under pressure to avert a recession amid a U.S.-China trade war.

* U.S. manufacturing activity slowed to near a three-year low in June, with a measure of new orders received by factories tumbling, amid growing anxiety over an escalation in trade tensions between the United States and China.

* Britain's economy has lost momentum and might have shrunk in the second quarter of 2019, according to data that showed the double impact of Brexit and the slowdown in the global economy.

* Euro zone inflation remains unacceptably low and the European Central Bank will ease policy further if necessary to boost price pressures, policymakers said on Monday, just weeks after ECB chief Mario Draghi hinted at more stimulus.

* President Donald Trump said on Monday that trade talks with China were under way and any deal would need to be somewhat tilted in favor of the United States.

* Hong Kong police fired tear gas early on Tuesday to disperse hundreds of defiant protesters, some of whom had stormed and ransacked the city's legislature hours earlier on the anniversary of the city's 1997 return to Chinese rule.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.78 percent to 800.20 tonnes on Monday from 794.04 tonnes on Friday.

* Barrick Gold Corp said on Monday its Nevada joint venture with Newmont Goldcorp is expected to produce 1.8 million ounces to 1.9 million ounces of gold in the second half of 2019.

DATA AHEAD (GMT)

* 0430 Australia RBA Cash Rate July

* 0600 UK Nationwide House Price MM YY June

* 1200 Brazil Industrial Output MM YY May (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)

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