June 5 (Reuters) - Gold prices edged up on Wednesday to stay
near a three-month peak touched in the previous session, buoyed
as the dollar was weakened by increasing expectations the U.S.
Federal Reserve will cut interest rates to counter risks from
trade wars.
FUNDAMENTALS
* Spot gold XAU= was up 0.1% at $1,326.03 per ounce as of
0138 GMT, after touching its highest since Feb. 27 at $1,328.98
on Tuesday.
* U.S. gold futures GCv1 were 0.2% higher at $1331.01 an
ounce.
* The dollar .DXY was trading close to a more than
one-month low touched in the previous session. USD/
* Fed Chair Jerome Powell said the central bank would act
"as appropriate" in the face of trade war risks, leaving the
door open for a possible rate cut a day after St. Louis Fed
President James Bullard said that a rate cut "may be warranted
soon". * Economic data released shortly after the statement also
stoked expectations for a rate cut, as new orders for U.S.-made
goods fell in April and shipments dropped by the most in two
years. * Lower interest rates would support bullion as they reduce
the opportunity cost of holding the non-yielding metal.
* Global stock indexes rallied on Tuesday and U.S. stocks
registered their biggest one-day gains in five months, while
yields on U.S. Treasuries rose. MKTS/GLOB
* China's commerce ministry on Tuesday urged dialogue and
negotiation to solve trade differences with the United States.
* Defying increasing criticism from within his own party,
U.S. President Donald Trump said on Tuesday he would likely go
ahead with new tariffs on imports from Mexico to pressure it to
clamp down on rising numbers of migrants entering the United
States. * India's gold imports in May jumped 49% from a year earlier
to 116 tonnes as a correction in local prices during a key
festival boosted retail demand, a government source said on
Tuesday. * Chinese President Xi Jinping said the country's economy is
stable, healthy and well placed to meet all risks and
challenges, according to a transcript published by the Xinhua
news agency. AHEAD (GMT)
* 0800 EU Markit composite final PMI (May)
* 1400 U.S. ISM Non-manufacturing PMI (May)
* 1800 U.S. Federal Reserve issues the Beige Book of
economic condition