(Fixes Reuters Instrument Codes in paragraph 9 and 13)
* Weekly jobless claims total 2.981 million
* Gold hits a high since April 23 at $1,735.96/oz
* SPDR gold holdings hit fresh seven-year high
By Eileen Soreng
May 14 (Reuters) - Gold climbed to a three-week high on Thursday, propelled by safe-haven demand, as investors ditched riskier assets on concerns over long-drawn economic weakness and renewed U.S.-China trade tensions.
Spot gold XAU= rose 0.7% to $1,727.70 per ounce by 1:50 p.m. EDT (1750 GMT), having earlier hit a high since April 23 at $1,735.96. U.S. gold futures GCv1 settled 1.4% higher at $1,740.90.
"It seems some investors turned bearish on equities, U.S.-China relations continue to head to a downward spiral and you have very bleak data coming from the U.S. and its all supporting safe-haven (demand)," said Edward Moya, a senior market analyst at broker OANDA.
"Gold prices have been coiling up over the last couple of weeks but it seems now you have the macro-economic backdrop that is going to support high prices in the near-term."
U.S. Federal Reserve Chairman Jerome Powell warned on Wednesday of an "extended period" of weak economic growth, vowed to use the central bank's power as needed, and called for additional fiscal spending to stem the fallout from the coronavirus pandemic. data show initial claims for state unemployment benefits totaled 2.981 million for the week ended May 9. While that was down from 3.176 million in the prior week and marked the sixth straight weekly drop, claims remain astoundingly high. stock markets fell for a third day in a row as the disappointing jobs data and signals by central banks that further government stimulus may be needed stoked investor concerns about the global economic recovery. MKTS/GLOB
Gold also benefited from renewed uncertainty over Sino-U.S. trade after President Donald Trump said he was very disappointed in China over its failure to contain the coronavirus, saying the worldwide pandemic cast a pall over his trade deal with Beijing. of sentiment, SPDR Gold Trust GLD holdings, the world's largest gold-backed exchange-traded fund (ETF), jumped to a fresh seven-year high of 1,092.14 tonnes on Wednesday. GOL/ETF
"While ETF investors with a longer-term view have continued to accumulate gold, hedge funds have cut bullish bets to an 11-month low," Saxon Bank analyst Ole Hansen said.
"A sustained breakout could force these funds to get down from the fence and back into the market. If realized, it could be the driver behind the next move higher."
Elsewhere, palladium XPD= rose 0.1% to $1,820.61 an ounce.
Platinum XPT= gained 1% to $763.94 per ounce, while silver XAG= was 0.8% higher at $15.77.
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https://tmsnrt.rs/3aIRuz7
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