PRECIOUS-Gold gains as weak China data weighs on risk appetite

Trump are not appropriate for the U.S. economy right now.

(Updates prices, adds comments and details)

* China's industrial production growth slows sharply in Oct

* Deterioration in Hong Kong will further support gold - analyst

* Fed Chair Jerome Powell signals rate-cut pause

Nov 14 (Reuters) - Gold prices inched up on Thursday as Asian equities turned lower after weaker-than-expected economic data out of China weighed on risk appetite, boosting demand for safe-haven assets.

Spot gold was up 0.1% at $1,464.31 per ounce, as of0401 GMT, while U.S. gold futures rose 0.1 % to $1,464.80

per ounce. Asian stocks fell after China's industrial output grew significantly slower than expected in October, as weakness in global and domestic demand and the drawn-out Sino-U.S. trade war weighed on activity in the world's second-largest economy.

"Gold is being supported as the Chinese industrial production and retail sales came way below expectations," OANDA analyst Jeffrey Halley said. "Another deterioration in Hong Kong this week will further support gold, but it's really all about this ongoing trade talks, which is becoming like a broken record." Dialling up the trade rhetoric, U.S. President Donald Trump on Wednesday threatened to ramp up tariffs on Chinese goods if the countries failed to reach a deal on trade. That came after media said the U.S.-China trade negotiations had 'hit a snag' over farm purchases, with China not wanting a deal that looked one-sided in favour of the United States.

U.S. Federal Reserve Chair Jerome Powell on Wednesday told the Joint Economic Committee that negative interest rates sought

He also added that the central bank would probably stop (with interest rate cuts) where it is unless there is a "material" change in the economic outlook. "Investors are stuck with rising trade tensions with Trump threatening additional tariffs again, but what's weighing on gold is the hawkish stance from the Fed overnight, saying rate cuts are on hold for now," ANZ analyst Daniel Hynes said. "In the long term, the backdrop is pretty conducive. With the global central banks being accommodative, gold will get its support." The Fed has cut interest rates thrice this year to help sustain U.S. growth. A lower interest rate reduces the opportunity cost for holding the non-yielding bullion. Holdings of the world's largest gold-backed exchange-traded

fund, SPDR Gold Trust fell 0.04% to 896.77 tonnes on


Elsewhere, palladium climbed 0.4% to $1,716.63 perounce. Silver was down 0.1% at $16.95 per ounce andplatinum dipped 0.1% to $872.90 per ounce.

(Reporting by Sumita Layek and Diptendu Lahiri in Bengaluru, Editing by Sherry Jacob-Phillips)