Gold heads for 4th monthly gain on slowdown, trade worries

BEGALURU, Aug 31 (Reuters): Gold prices fell on Friday on a slight recovery in equities markets and Treasury yields but was on track for a fourth-straight monthly gain as fears of a global recession and uncertainty on US-China trade relations drove investors to safe havens.

Spot gold fell 0.5 per cent to $1,520.40 per ounce at 1:29 p.m. EDT (1729 GMT) and has gained 7.4 per cent so far this month.

US gold futures settled down 0.5 per cent at $1,529.40.

The market is awaiting news on the trade front, said Suki Cooper, precious metals analyst at Standard Chartered Bank.

"At the moment, gold market is focused on impact in terms of global growth and whether we'll continue to see central banks around the world easing monetary policy," Cooper added.

Chinese and US trade negotiating teams are maintaining effective communication, a day after both sides discussed the next round of in-person negotiations in September, China's foreign ministry said on Friday.

On Thursday, China's commerce ministry said a September round of meetings was being discussed by the two sides, but added it was important for Washington to cancel a tariff increase.

Positive signs on the trade front also lifted world stocks to a one-week high, limiting bullion's upside.