(Corrects last paragraph to say platinum prices fell 0.2% to$828.75 an ounce and not rose 0.87% to $1,560.51.)
* SPDR Gold holdings rose 0.78% on Monday
* U.S. threatens tariffs on $4 bln of additional EU goodsBy Diptendu LahiriJuly 2 (Reuters) - Gold prices rose 1.5% on Tuesday, a dayafter posting the biggest one-day percentage fall in 2-1/2years, as U.S. Treasury yields fell on worries over globalgrowth and renewed concerns over global trade.
Spot gold jumped 1.55% to $1,405.53 per ounce at 1:33p.m. EDT (1733 GMT), after falling 1.8% on Monday, its biggestone-day percentage decline since November 2016.U.S. gold futures settled 1.3% higher at $1,408 perounce."The steady rally in bonds and U.S. dollar unable tocapitalize on Monday's sharp gain is encouraging (gold) bulls.Prices holding $1,380, the short-term support has helped," saidTai Wong, head of base and precious metals derivatives tradingat BMO.U.S. yields were also pressured by a drop in British yieldsto 2-1/2-year lows after Bank of England Governor Mark Carneycited risks from Brexit and trade conflicts in a speech thatprompted speculation the BOE may lower interest rates in thenext 12 months. White House trade adviser Peter Navarro said on Tuesday U.S.trade talks with China are heading in the right direction and itwill take time to get the right deal made. The U.S. government also threatened tariffs on $4 billion ofadditional European Union goods in a long-running dispute overaircraft subsidies."The trade fiasco could be a positive factor for gold as thedeal is still not reached yet," said Carlo Alberto De Casa,chief analyst with ActivTrades. "The stock markets are in thered, which is another positive thing for gold."Data showed manufacturing activity slowed last month,weakening appetite for risk.Gold prices hit a six-year high last week at $1,438.63 anounce on dovish outlooks from major central banks and anescalation of U.S.-Iran tensions. The market is focusing on U.S. non-farm payrolls data due onFriday, which should help investors better assess whether theFed will cut interest rates later this month."Upcoming U.S. economic numbers and Federal Reservespeakers' comments are critical as we approach the Federal OpenMarket Committee meeting at the end of July," UBS analysts saidin a note."The potential for renewed trade tensions and broadergeopolitical risks, in our view, is likely to spur furtherinflows into gold by financial investors."Holdings of SPDR Gold Trust , the world's largestgold-backed exchange-traded fund, rose 0.78% to 800.20 tonnes onMonday. Silver was up 0.47% at $15.21 per ounce, whilepalladium rose 0.87% to $1,560.51 per ounce.Platinum fell 0.2% to $828.75 an ounce, aftertouching a near seven-week high on Monday. (Reporting by Diptendu Lahiri and Nallur Sethuraman inBengaluruEditing by Susan Thomas)
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