* U.S. to impose 10 pct tariffs on $200 bln of Chinese goods
* Spot gold may break support at $1,247/oz - technicals
* SPDR holdings fell 0.22 pct on Tuesday
* Palladium falls to two-week low
(Adds comment and updates prices)
By Karen Rodrigues
BENGALURU, July 11 (Reuters) - Gold prices fell on Wednesday as
the dollar firmed against the yuan after the United States threatened
to impose additional tariffs on Chinese goods, escalating trade
tensions between the world's two largest economies.
The Trump administration raised the stakes in its trade dispute
with China, threatening 10 percent tariffs on a list of $200 billion
worth of Chinese imports.
The news comes after Washington imposed 25 percent tariffs on $34
billion of Chinese imports last week. Beijing responded immediately
with matching tariffs on the same value of U.S. goods exported to
Spot gold was 0.3 percent lower at $1,251.43 an ounce at 0710
GMT. In the previous session, the bullion hit a one-week low at
$1,246.81 an ounce.
U.S. gold futures for August delivery were 0.3 percent lower at
$1,252.30 an ounce.
The offshore Chinese yuan fell as low as 6.6918 per dollar
, down more than 0.5 percent from late U.S. levels and edging near
its 11-month low of 6.7344 touched on July 3.
A firmer greenback makes bullion expensive for holders of other
currencies as the commodity is priced in dollars.
It's risk-off and that put the dollar on the front foot and
triggered commodities lower, a Hong Kong-based trader said.
"With these tariffs, gold has not reacted well as a
safe-haven in the past so the metal is under pressure," the
Spot gold may break a support at $1,247 per ounce and fall more
towards the next support at $1,237 as it has completed a bounce from
the July 3 low of $1,237.32, Reuters technicals analyst Wang Tao said.
"When trade war risk escalates investors run for cover... I
always have gold as a hedge but it's been more challenging to have
this view when the U.S. dollar is attracting haven flows," said
Stephen Innes, APAC trading head at OANDA.
Meanwhile, holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Shares , fell 0.22 percent to 799.02
tonnes on Tuesday.
Among other precious metals, silver shed 0.8 percent to $15.92
an ounce and platinum was 0.5 percent lower at $837.70 per ounce.
Earlier in the session, both the metals fell to their lowest since
Palladium was down 0.4 percent at $938.03 per ounce, after
earlier falling to a two-week low at $934.35.
(Reporting by Karen Rodrigues in Bengaluru; editing by Eric Meijer
and Subhranshu Sahu)
((K.Rodrigues@thomsonreuters.com; Within U.S. +1 651 848 5832,
Outside U.S. +91 80 6749 9229; Reuters Messaging: K.Rodrigues.email@example.com))