* Buyers eye U.S. manufacturing ISM survey due 1400 GMT
* Commerce battle considerations weigh on Asia shares (Updates costs)
By Eileen Soreng
Sept 3 (Reuters) – Gold costs fell on Tuesday on the again of a firmer greenback, however fears of a worldwide financial slowdown fuelled by an intensifying U.S.-China commerce battle stored costs close to multi-year highs.
Spot gold was down 0.3% at $1,526.35 per ounce at 0605 GMT, however nonetheless not far off final week’s $1,554.56, its highest stage since April 2013.
U.S. gold futures have been up 0.4% at $1,535.Three an oz..
The stronger greenback is weighing on gold costs, Phillip Futures analyst Benjamin Lu stated, including that traders are ready on the U.S. manufacturing survey by the Institute for Provide Administration (ISM) for some ahead steering on U.S. financial situations.
“Higher than anticipated ISM end result can provide some weak point to gold costs on an intraday foundation,” Lu stated.
The greenback index, which measures the buck in opposition to a basket of six main currencies, was up 0.4%, having climbed to a greater than two-year excessive. A firmer greenback makes bullion costlier for traders holding different currencies.
In the meantime, Asian shares on Tuesday have been dented by U.S.-China commerce frictions.
General danger sentiment was poor and the commerce battle was prone to create extra volatility, benefiting gold, Lu stated.
China has lodged a grievance in opposition to the US on the World Commerce Group over U.S. import duties, trashing the most recent tariff actions as violating the consensus reached by leaders of China and the US in a gathering in Osaka.
A brand new spherical of tit-for-tat tariffs got here in impact on Sunday and though U.S. President Donald Trump has stated each side would nonetheless meet for talks later this month, tensions have proven little signal of abating.
Additionally holding traders on edge have been uncertainties over Brexit with Prime Minister Boris Johnson indicating he may name an election to dam lawmakers’ efforts to avert a no-deal Brexit.
“I feel markets are nonetheless structurally bullish, with constant bearish headlines fuelling gold’s climb,” stated Howie Lee, economist at OCBC Financial institution
“I gained’t be shocked if gold breaks above $1,600/ouncesbefore this 12 months ends.”
Gold rose greater than $100 in August as a result of commerce battle, fears of a worldwide financial downturn, destructive debt yields across the globe and hopes for rate of interest cuts by central banks.
Elsewhere, silver rose 0.2% to $18.48 per ounce. Platinum gained 0.6% to $935.28 per ounce and palladium was regular at $1,530.50. (Reporting by Eileen Soreng in Bengaluru; Enhancing by Rashmi Aich and Richard Pullin)