* SPDR Gold holdings fell 0.4 pct on Friday
* Speculators trim net shorts in COMEX gold
* GRAPHIC-2018 asset returns: (Updates prices)By Zandi ShabalalaLONDON, Sept 3 (Reuters) - Gold prices eased slightly onMonday as the dollar held near a one-week high on worries overan escalation in trade conflicts between the United States andits trading partners.A firmer U.S. currency makes dollar-priced gold moreexpensive for holders of other currencies, potentially sappingdemand. Safe-haven demand for gold has this year beenovershadowed by the metal's relationship with the greenback.U.S. President Donald Trump said on Saturday that there wasno need to keep Canada in the North American Free TradeAgreement and warned Congress not to meddle with negotiations orhe would terminate the trilateral trade pact, which alsoincludes Mexico. Meanwhile, Bloomberg News reported that Trump was preparedto ramp up a trade war with China and had told aides that he wasready to impose tariffs on $200 billion more in Chinese importsas soon as a public comment period on the plan ends on Thursday. "For as long as the trade war fears that are helping dollarstrength continue, gold is going to come under pressure," saidETF Securities commodity strategist Nitesh Shah.Gold prices are down about 8 percent this year against abackdrop of rising U.S. interest rates, trade disputes and theTurkish currency crisis, with investors parking their money inthe U.S. dollar.Spot gold was down 0.1 percent at $1,199.56 an ounceat 1220 GMT, having touched an intra-day low of $1,195.36.
U.S. gold futures were flat at $1,206.70 an ounce.The dollar index , which measures the greenbackagainst a basket of currencies, was barely changed at 95.171. If gold recovers to $1,210 an ounce there are good chancesof seeing further rebounds to $1,230, said ActivTrades chiefanalyst Carlo Alberto De Casa. But a decline below $1,200 wouldsee prices test $1,180 and to the following support placed at$1,160, he added.
There was some indication that the bearish sentiment in themarket has started to shift slightly, with net short positionsin COMEX gold contracts in the week to Aug. 28 showing a declinefor the first time in more than a month. U.S. economic data this week, including a manufacturingsurvey on Tuesday and an employment report on Friday, couldinfluence gold's moves as investors look for clues on the paceof U.S. interest rate increases.Meanwhile, liquidations continued in SPDR Gold, the world'slargest gold-backed exchange-traded fund. Holdings have fallenby more than 13 percent since peaking in late April. Spot silver was flat at $14.50 an ounce aftertouching its lowest in more than two weeks at $14.37.
Platinum was steady at $783 an ounce, while palladium was unchanged at $981 after hitting a 10-week high onFriday at $984.97. (Additional reporting by Nallur Sethuraman in BENGALURUEditing by Kirsten Donovan and David Goodman)
zandi.shabalala.thomsonreuters.com@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.