Gold steadies near $1,500 as tariffs on EU boost safe-haven bets

• "The strength of the rebound seen in the last 48 hours is significant, confirming that investors are still seeing any correction in gold prices as a good chance to add more bullion to their portfolio."
• Gold had jumped 1.4pc on Wednesday after disappointing data on hiring by US private employers unnerved investors already concerned about slowing growth in the world's largest economy.

Gold steadied near $1,500 on Thursday, having risen more than 1pc in the previous session after the United States announced tariffs on European goods creating more uncertainty for the global economic outlook.

Spot gold was little changed at $1,499.71 per ounce, as of 1009 GMT, while US gold futures were down 0.2pc at $1,505.50 per ounce.

The US on Wednesday said it would slap tariffs on certain products from the European Union after the World Trade Organization gave Washington a green light to impose tariffs on $7.5 billion worth of EU goods annually in a long-running trade case.

"Trump's tariffs against the European Union create a certain amount of uncertainty and potential for economic failure," said SP Angel analyst John Meyer.

Gold is considered a store of value during economic or political uncertainty.

Adding to the economic gloom in Europe, a survey showed euro zone business growth stalled in September as an ongoing contraction in manufacturing activity is increasingly affecting the services industry.

"It all indicates ongoing stress in the markets and an inevitable flight into recession," Meyer said.

The US tariff announcement sent world stocks to near four-week lows while yields on major benchmark bonds slipped, fuelling fears about global growth and dousing risk appetite.

"Gold rebounded to $1,500 on the back of new trade tension... The short-term trend remains mixed, while the medium-long term is still positive for bullion," ActivTrades chief analyst Carlo Alberto De Casa said in a note.

"The strength of the rebound seen in the last 48 hours is significant, confirming that investors are still seeing any correction in gold prices as a good chance to add more bullion to their portfolio."

Gold had jumped 1.4pc on Wednesday after disappointing data on hiring by US private employers unnerved investors already concerned about slowing growth in the world's largest economy.

Further supporting gold, the dollar slid to one-week lows against the euro and yen.

Investors are now keeping an eye out for weekly initial jobless claims and September's US non-manufacturing due later in the day.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, rose to 923.76 tonnes on Wednesday, very close to last week's 924.94 tonnes, a peak since mid-November 2016.

Elsewhere, platinum was flat at $886.54 per ounce, while silver fell 0.2pc to $17.52 an ounce.

Palladium was down 0.1pc at $1,685.36 per ounce.