Gold rises as growth, trade worries curb risk-taking

BENGALURU, July 02 (Reuters): Gold prices rose on Tuesday, after its biggest one-day per centage fall in 2-1/2 years the previous session, as risk appetite soured on worries over global growth and uncertainties around a Sino-US trade deal.
Spot gold was up 0.6 per cent at $1,391.80 per ounce at 1205 GMT, after falling 1.8 per cent on Monday, its biggest one-day per centage decline since November 2016.
US gold futures were up 0.5 per cent at $1,395.70 an ounce.
President Donald Trump said on Monday any trade deal with China would need to be "somewhat tilted" in favour of the United States. The US government also threatened tariffs on $4.0 billion of additional European Union goods in a long-running dispute over aircraft subsidies.
"The trade fiasco could be a positive factor for gold as the deal is still not reached yet ... The stock markets are in red, which is another positive thing for gold," said Carlo Alberto De Casa, chief analyst with ActivTrades.
Data showed manufacturing activity slowed last month, weakening appetite for risk. Factory activity shrank across much of Europe and Asia in June, while growth in manufacturing cooled in the United States, keeping the world's monetary policymakers under pressure to avert a recession.