Gold firms near record peak as trade war concerns linger

Gold prices inched higher on Thursday to hover near an all-time high hit in the last session, as Sino-U.S. tariff war concerns boosted safe-haven demand, while investors awaited the payrolls data for clues about the health of the world's largest economy.

FUNDAMENTALS

* Spot gold was up 0.1% at $2,867.79 per ounce, as of 0032 GMT. Bullion hit a record high of $2,882.16 in the previous session.


* U.S. gold futures shed 0.2% to $2,887.10.

* Earlier this week, China imposed duties on U.S. goods in response to new U.S. tariffs, escalating the trade war between the two countries. U.S. President Donald Trump expressed no urgency in speaking with Chinese President Xi Jinping to alleviate the tensions.

* Meanwhile, the U.S. Postal Service said it would resume accepting all inbound mail and packages from China and Hong Kong on Wednesday, a day after temporarily suspending such service.

* Federal Reserve officials pointed to the large policy uncertainty around tariffs and other issues arising from the early days of Trump's administration as among the top challenges in figuring out where to take U.S. monetary policy in the months ahead.

* Gold is considered a safe investment during economic and geopolitical turmoil, but higher interest rates reduce the non-yielding asset's appeal.

* The ADP National Employment report showed the U.S. economy added 183,000 jobs in the private sector last month, compared with economists' estimate of a rise of 150,000.

* The U.S. employment report, due on Friday, is expected to offer more insights into the economy's overall strength.

* Spot silver added 0.1% to $32.35 per ounce, platinum edged 0.2% higher to $981.81, and palladium gained 0.1% to $990.66.

DATA/EVENTS (GMT) 0700 Germany Industrial Orders MM Dec 0700 Germany Manufacturing O/P Cur Price SA, Consumer Goods SA Dec 0930 UK S&P GLOBAL PMI: MSC COMPOSITE - OUTPUT Jan 1200 UK BOE Bank Rate Feb 1330 US Initial Jobless Clm 1 Feb, w/e 1530 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 31 Jan.