PRECIOUS-Gold edges down on stronger dollar, trade woes limit losses

* Investors eye U.S. manufacturing ISM survey due 1400 GMT
* Trade war concerns weigh on Asia stocks

(Updates prices)
By Eileen Soreng
Sept 3 (Reuters) - Gold prices eased on Tuesday on the back
of a firmer dollar, but fears of a global economic slowdown
fuelled by an intensifying U.S.-China trade war kept prices near
multi-year highs.
Spot gold XAU= was down 0.2% at $1,528.00 per ounce at
0718 GMT, but still not far off last week's $1,554.56, its
highest level since April 2013.
U.S. gold futures GCv1 were up 0.4% at $1,535.9 an ounce.
The stronger dollar is weighing on gold prices, Phillip
Futures analyst Benjamin Lu said, adding that investors are
waiting on the U.S. manufacturing survey by the Institute for
Supply Management (ISM) for some forward guidance on U.S.
economic conditions.
"Better than expected ISM result can give some weakness to
gold prices on an intraday basis," Lu said.
The dollar index .DXY , which measures the greenback
against a basket of six major currencies, was up 0.4%, having
climbed to a more than two-year high. A firmer dollar makes
bullion costlier for investors holding other currencies. USD/
Meanwhile, Asian stocks on Tuesday were dented by U.S.-China
trade frictions. MKTS/GLOB
Overall risk sentiment was poor and the trade war was likely
to create more volatility, benefiting gold, Lu said.
China has lodged a complaint against the United States at
the World Trade Organization over U.S. import duties, trashing
the latest tariff actions as violating the consensus reached by
leaders of both countries at a meeting in Osaka. A new round of tit-for-tat tariffs came in effect on Sunday
and although U.S. President Donald Trump has said both sides
would still meet for talks later this month, tensions have shown
little sign of abating.
Also keeping investors on the edge were uncertainties over
Brexit. Lawmakers will decide on Tuesday whether to shunt
Britain towards a snap election when they vote on the first
stage of their plan to block Prime Minister Boris Johnson from
pursuing a no-deal Brexit. "I think markets are still structurally bullish, with
consistent bearish headlines fuelling gold's climb," said Howie
Lee, economist at OCBC Bank
"I won't be surprised if gold breaks above $1,600/oz before
this year ends."
Gold rose more than $100 in August due to the trade war,
fears of a global economic downturn, negative debt yields around
the globe and hopes for interest rate cuts by central banks.
Federal fund futures FEDWATCH implied traders saw a 93%
chance of a 25 basis point rate cut by the U.S. Federal Reserve
this month.
Elsewhere, silver XAG= rose 0.1% to $18.47 per ounce.
Platinum XPT= was steady at $929.48 per ounce, while palladium
XPD= was up 0.4% at $1,536.94.