June 12 (Reuters) - Gold prices steadied on Wednesday after
touching a one-week low in the previous session, buoyed by concerns
around U.S.-China trade relations amid expectations of an interest
rate cut by the U.S. Federal Reserve.
* Spot gold was flat at $1,326.90 as of 0115 GMT, after falling
to its lowest since June 3 at $1,319.35 in the previous session.
* U.S. gold futures were also steady at $1,330.70 an ounce.
* U.S. President Donald Trump on Tuesday defended the use of
tariffs as part of his trade strategy, while China vowed a tough
response if the United States insists on escalating trade tension amid
* Trump said that he was holding up a trade deal with China and
had no interest in moving ahead unless Beijing agrees again to four or
five "major points," which he did not specify.
* He also took an aim at the U.S. Federal Reserve, saying interest
rates were "way too high" and the central bank had "no clue".
* Fed policymakers will meet on June 18-19 against the backdrop of
rising trade tensions, slowing U.S. growth and a sharp step-down in
hiring in May that have led markets to price in at least two rate cuts
by the end of 2019.
* Asian share markets got off to a cautious start on Wednesday as
the White House took a tough line on a trade deal with China, just as
investors were bracing for the latest batch of economic data from the
* A drop in two-year treasury prices flattened the yield curve on
Tuesday after a Labor Department report showed producer prices
increased in May for the second consecutive month, pointing to a
steady pick-up in underlying inflation pressures.
* Holdings of SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, fell 0.03% to 756.18 tonnes on Tuesday from
756.42 tonnes on Monday.
DATA AHEAD (GMT)
* 1230 U.S. Core CPI YY, NSA May
* 1230 U.S. CPI MM, SA May
* 1230 U.S. CPI YY, NSA May
(Reporting by Brijesh Patel in Bengaluru; editing by Uttaresh.V)
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