May 19 (Reuters) - Gold prices inched up on Tuesday, supported by strained Sino-U.S. relations and a dismal global economic outlook, although positive news from an early-stage trial for a coronavirus vaccine spurred some risk appetite and capped the metal's gains.
FUNDAMENTALS
* Spot gold XAU= was up 0.2% at $1,735.04 per ounce by 0042 GMT. U.S. gold futures GCv1 gained 0.2% to $1,737.10.
* On Monday, the metal fell back from a more than seven-year high to settle 0.5% lower, as stocks and oil surged after drugmaker Moderna MRNA.O said its experimental vaccine showed promising results in an early-stage trial. Highlighting Sino-U.S. friction, stock exchange Nasdaq Inc NDAQ.O is set to unveil new restrictions on initial public offerings, which will make it more difficult for some Chinese companies to debut on it, sources said. U.S. lawmakers and officials are crafting proposals to push American companies to move operations or key suppliers out of China that include tax breaks, new rules, and carefully structured subsidies. Money markets ramped up expectations that the United Kingdom could cut interest rates below zero for the first time. The global economy will take much longer to recover fully from the shock caused by the new coronavirus than initially expected, the head of the International Monetary Fund said. Gold has risen about 14% this year as central banks rolled out a wave of rate cuts and other stimulus to limit the economic damage from the pandemic. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. Epicentres of the coronavirus outbreak including New York, Italy and Spain are gradually lifting restrictions that have kept millions inside. Palladium XPD= slipped 0.9% to $1,995.76 per ounce, platinum XPT= fell 0.5% to $814.01, and silver XAG= fell 0.5% to $17.09. DATA/EVENTS (GMT) 0600 UK
ILO Unemployment Rate
March 0600 UK
Employment Change
March 0900 Germany ZEW Economic Sentiment
May 1230 US
Building Permits: Number April