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PRECIOUS-Gold gains as Trump threatens to increase tariffs on Chinese goods

May 6 (Reuters) - Gold rose on Monday after U.S. President Donald Trump threatened to impose tariffs on Chinese goods, indicating a dramatic deterioration in Sino-U.S. trade talks and prompting a sharp downturn in riskier assets.


* Spot gold rose 0.3 percent to $1,282.96 per ounce as of 0121 GMT.

* U.S. gold futures were up 0.2 percent to $1,283.70 an ounce.

* United States President Donald Trump dramatically increased pressure on China to reach a trade deal by announcing on Sunday he would hike tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon.

* Asian equities tumbled while oil prices plunged on Monday after the sudden deterioration in Sino-U.S. trade talks, which reversed apparent progress made in recent months.

* According to a report by the Wall Street Journal, China now considers cancelling trade talks with the U.S. this week after Trump threatened to hike tariffs.

* Gold is used as a safe-haven investment in times of geopolitical or global economic turmoil.

* The safe-haven yen climbed and the yuan slid on Monday after Trump's announcement, sending riskier assets into a spin and slamming stock futures.

* Gold demand was robust in India and Singapore last week as a correction in prices ahead of a key gold-buying festival boosted purchases even as major centres like China and Japan were closed for most of the week due to holidays.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.63 percent to 740.82 tonnes on Friday from 745.52 tonnes on Thursday.

* The Perth Mint said its gold products sales in April fell about 39 percent from the previous month, according to a blog post.

* Breaker Resources NL on Monday announced the discovery of a new steep lode with abundant coarse visible gold below surface in the southern part of the Bombora gold deposit.

* Perseus Mining Ltd on Monday approved the construction of Yaouré gold mine in Côte D'Ivoire.


* 0800 EU Markit Comp Final PMI April (Reporting by Arijit Bose in Bengaluru; Editing by Shreejay Sinha)