PRECIOUS – Gold becomes smaller as the increasing tensions in trade put the dollar under pressure Agricultural raw materials



BENGALURU, September 3 (Reuters) – Monday lower with gold, with prices falling below the psychological $ 1,200 level as the dollar rose as a result of concerns about the escalation of global trade strains.

FUNDAMENTALS

* Spot gold decreased by 0.3 percent at $ 1,196.93 per ounce at 0054 GMT.

* American gold futures fell 0.4 percent to $ 1.202.50 per ounce.

* Markets are nervous about the escalating trade dispute between the United States and China, after US President Donald Trump said last week that he wanted to move forward with a plan to impose tariffs on Chinese imports worth $ 200 billion.

* Trump said on Saturday that it was not necessary to keep Canada in the North American Free Trade Agreement and warned Congress not to interfere in trade negotiations, otherwise he would cancel the Trilateral Trade Pact altogether.

* The gold price has so far fallen about 8 percent this year, amid increasing US interest rates, international trade disputes and the Turkish currency crisis, with investors preferring the dollar as a safe haven.

* The dollar index, which measures the greenback against a basket of currencies, increased by 0.1 percent to 95.204.

* Hedge funds and money managers reduced their net short positions in COMEX gold contracts for the first time in more than a month during the week up to and including 28 August, the data of the American Commodity Futures Trading Commission (CFTC) showed on Friday.

* Holdings of SPDR Gold Trust GLD, the largest gold-backed stock exchange, fell by 0.35 percent to 755.16 tons on Friday from Thursday.

* The American Mint sold 21,500 grams of American Eagle gold coins in August, 38.6 percent less than the previous month.

* Canada & # 39; s Tahoe Resources Inc., said on Friday that the mining activities had temporarily been suspended at the La Arena gold mine in Peru after protesters were scrapped of its property and demanded payment for environmental impacts of mining on their community.

* The physical gold demand in India last week was subdued, despite an improvement in retail purchases before the festival season, despite a rise in domestic prices, while the top consumer China saw a slight increase in the activity.

DATA AHEAD (GMT)

0145 China Caixin makes PMI final Aug

0750 France Markit manufacturing PMI aug

0755 Germany Markit / BME manufacturing PMI aug

0800 Euro zone Markit manufacturing PMI aug

Reporting by Nallur Sethuraman in Bangalore; edit with
Richard Pullin


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