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PRECIOUS-Gold edges up as falling yields, growth worries lift safe-haven demand

* Gold saw worst one-day pct fall in nearly 2 weeks on Tues

* Market eyes Brexit vote at 1900 GMT

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl (Updates prices, adds details and comments)

By Sumita Layek

March 27 (Reuters) - Gold prices inched up on Wednesday as alacklustre stock market and falling bond yields reflectedworries about a global economic slowdown and lifted safe-havenassets.

Spot gold XAU= was up 0.2 percent at $1,318.26 per ounceas of 1104 GMT, after falling 0.5 percent on Tuesday. U.S. goldfutures GCv1 rose 0.2 percent to $1,318 an ounce.

"The falling yields are reducing the opportunity cost ofholding the bullion, which is supportive for gold prices," saidQuantitative Commodity Research analyst Peter Fertig.

Stock markets are turbulent and bond yields are coming downon concerns about a slowdown in the global economy, Fertig said.

The 10-year U.S. Treasury yield fell further US10YT=RR ,having fallen below the yield for three-month bills US3MT=RR on Friday for the first time since 2007, inverting the yieldcurve. An inversion is widely seen as indicating an economicrecession. US/

Global equity markets were flat on Wednesday, with Europeanstock markets paring most of their early gains. MKTS/GLOB

Facing rising threats to growth, the European Central Bankcould further delay a planned increase in interest rates if itneeds to and may look at measures to mitigate the effects ofnegative interest rates, ECB President Mario Draghi said onWednesday.

In the latest economic data from the United States,homebuilding fell more than expected in February, while consumerconfidence ebbed in March, offering more evidence of a sharpslowdown in economic activity early in the year.

"There clearly is a slowdown in the global economy and if westart seeing more signs of a potential recession, that should beeven more constructive for gold," said ING analyst WarrenPatterson.

Gold has gained more than 13 percent since touching morethan 1-1/2-year lows last August, on the back of a dovish U.S.Federal Reserve and global growth concerns.

Market participants are now keeping a close eye on theBritish parliament's vote on Brexit plans scheduled at 1900 GMT.

British Prime Minister Theresa May is expected to indicate adate for quitting her post as the price for getting hertwice-defeated Brexit deal ratified, while parliament tries toselect its own alternative from a multiple-choice list ofoptions.

Indicative of investor sentiment, holdings in the world'slargest gold-backed exchange-traded fund, SPDR Gold TrustGLD ,rose 0.41 percent to 784.26 tonnes on Tuesday.

Among other precious metals, palladium XPD= was down 1.7percent on Wednesday at $1,514 per ounce.

Silver XAG= was unchanged at $15.44 an ounce, whileplatinum XPT= was up 0.8 percent to $861.70.

Sumita.Layek@thomsonreuters.com Sumita.Layek.thomsonreuters.com@reuters.net


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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