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PRECIOUS-Gold hovers near five-week lows on firm dollar

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March 5 (Reuters) - Gold hovered on Tuesday near a five-weeklow touched in the previous session as rising U.S. Treasuryyields boosted the dollar, making gold expensive for holders inother currencies.

FUNDAMENTALS

* U.S. gold futures GCv1 were also steady at $1,287.70 anounce.

* The U.S. currency was trading against a group of six majorcurrencies at close to its two-week high of 96.816 posted in theprevious session. .DXY

* The dollar enjoyed some support from higher U.S. Treasuryyields as data, including fourth-quarter gross domestic product,eased fears of a potentially rapid loss in economic momentum. USD/

* U.S. Secretary of State Mike Pompeo said on Monday hethought the United States and China were "on the cusp" of a dealto end their trade war, adding to positive signs aboutnegotiations from both sides of the Pacific.

* Asian shares stepped back on Tuesday after China cut itseconomic growth target and pledged measures to support theeconomy amid growing challenges from rising debt and a disputeover trade and technology with the United States. MKTS/GLOB

* China has set its 2019 economic growth target at 6.0 to6.5 percent, Premier Li Keqiang said in his annual work reporton Tuesday, lower than last year's goal of around 6.5 percent.

* China and India raised gold holdings in January, accordingto data from IMF.

* Bank of America Merrill Lynch lifted its forecast forpalladium, expecting it to hit a key $2,000 level this year. Thebank said it expects platinum to average $883 for the sameperiod.

* Barrick Gold CorpABX.TO Chief Executive Mark Bristowsaid on Monday he wants to speak immediately with Newmont MiningCorp NEM.N about a proposed Nevada joint venture, even as hiscompany moves to take an $18 billion takeover offer directly toNewmont shareholders.

* Bank of Italy's Governor Ignazio Visco said on Monday thecountry's reserves of gold belonged to the central bank andcould not be used to fund government spending.

DATA AHEAD (GMT)0930 UK Markit Services PMI (FEB)1500 U.S. ISM non-manufacturing PMI (FEB) 0930 UK The Bank of England's Financial Policy Committeestatement from its meeting (Feb. 26, 2019) (Reporting by K. Sathya Narayanan in Bengaluru; editing byRichard Pullin) ((Sathya.Narayanan@thomsonreuters.com; within U.S. +1 651 8485832, outside U.S. +91 80 6749 3226/1298; Reuters Messaging:sathya.narayanan.thomsonreuters.com@reuters.net))


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