PRECIOUS-Gold retreats as equities, dollar recover

(Adds comments, updates prices)
* Fed delivers first emergency rate cut since 2008
* U.S. ISM non-mfg PMI data, Fed's Beige Book awaited
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl

By K. Sathya Narayanan
March 4 (Reuters) - Gold edged lower on Wednesday, reversing
course from a 3% surge in the previous session following a
surprise rate cut by the U.S. Federal Reserve as equities and
the dollar regained some ground.
Spot gold XAU= slipped 0.2% to $1,636.13 per ounce as of
0838 GMT, having risen as much as 0.7% earlier in the session
and registered its biggest one-day percentage gain since 2016 on
Tuesday.
U.S. gold futures GCcv1 slipped 0.4% to $1,637.20 per
ounce.
"In the very short term, gold has perhaps reached its upside
limit as this rate cut is priced in," CMC Markets analyst
Margaret Yang Yan said.
A broad uptick in risk-on sentiment and a rebound in the
dollar index are weighing on gold, she added.
The U.S. stock futures rose over 1% and European shares
inched up, recovering from weakness in global equities earlier
as the emergency cut from the Fed seemed to stoke rather than
soothe fears over the virus' widening economic fallout.
.N .EU MKTS/GLOB
The dollar also inched up from a two-month low touched on
Tuesday. USD/
The Fed trimmed interest rates by 50 basis points on Tuesday
in an emergency move, its first cut outside of a regularly
scheduled policy meeting since 2008. Equity markets may be viewing the rate cuts as a positive
catalyst now, unlike during the U.S. session, CMC's Yan said.
Lower interest rates reduce the opportunity cost of holding
non-yielding bullion.
Investors awaited the release of the U.S. ISM
non-manufacturing PMI data and the Fed's Beige Book of economic
condition later in the day.
The gold market has discounted the fact that any data will
come on the lower side and any impact from the ISM numbers will
be temporary, said Jigar Trivedi, a commodities analyst at Anand
Rathi Shares and Stock Brokers in Mumbai.
On the technical front, the immediate support is around
$1,630 an ounce while the resistance lays around $1,660, he
added.
Elsewhere, palladium XPD= fell 2.1% to $2,449.03 per
ounce, while platinum XPT= was up 0.1% at $875.99. Silver
XAG= gained 0.1% to $17.19 an ounce.
Demand for platinum from the auto industry will rise this
year for the first time since 2016 but it won't be enough to
offset a decline in investment buying, leaving the global market
in surplus again, the World Platinum Investment Council said.