PRECIOUS-Gold prices gain as U.S.-China trade war takes toll

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May 27 (Reuters) - Gold prices rose on Monday amid concernsthe Sino-U.S. trade war had started to take its toll on the U.S.economy, weakening the dollar and raising hopes of a U.S.Federal Reserve interest rate cut.


* U.S. gold futures GCv1 also gained 0.2%, to $1,285.50 anounce.

* The U.S. dollar .DXY was little changed against a basketof six major currencies, having fallen off a two-year peak inthe previous session after orders for U.S.-made capital goodsfell, further indicating that manufacturing and the broadereconomy are slowing, due in part to the U.S.-China tradedispute. FRX/

* China on Friday denounced U.S. Secretary of State MikePompeo for fabricating rumours after he said the chief executiveof China'sHuawei Technologies Co LtdHWT.UL was lying abouthis company's ties to the Beijing government. urn:newsml:reuters.com:*:nL4N2301MB

* Escalating trade tensions and weak data have fuelledexpectations of a rate cut from the U.S. Federal Reserve.

* Over the weekend, Trump repeated a complaint that theFederal Reserve's policies had kept U.S. economic growth fromreaching its full potential. urn:newsml:reuters.com:*:nL4N23104E

* Asia stocks edged up early on Monday, while the eurobarely budged in early Monday trade after pro-European Unionparties held on to two-thirds of seats in the EU parliamentelections, limiting gains in nationalist opponents. MKTS/GLOB

* Parties committed to strengthening the European Union heldon to two-thirds of seats in the EU parliament, officialprojections from the bloc's elections showed on Sunday, thoughfar-right and nationalist opponents saw strong gains. urn:newsml:reuters.com:*:nL5N2310EJ

* Hedge funds and money managers sharply reduced their netlong positions in COMEX gold in the week to May 21, the U.S.Commodity Futures Trading Commission (CFTC) said on Friday. CFTC/

* Gold prices in India flipped into premiums last week onfirmer demand in the domestic market, while buyers in topconsumer China took advantage of weaker bullion prices andstepped up purchases. GOL/AS

* Gold exports from Mali increased by 15.4% to 61.63 tonnesin 2018, up from 53.4 tonnes in 2017, the West African nationsaid on Friday, mostly owing to stronger industrial production. urn:newsml:reuters.com:*:nL5N2303CT (Reporting by Arijit Bose in Bengaluru; Editing by JosephRadford) ((Arijit.Bose@thomsonreuters.com; Within U.S. +1 651 848 5832,Outside U.S. +91 8067495254; Reuters Messaging:Arijit.Bose.thomsonreuters.com@reuters.net))

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