PRECIOUS-Gold prices slip on rising dollar and equities

* SPDR Gold Trust holdings rose 0.4% on Friday
* Speculators raise gold bullish positions in week to May 19
-CFTC
* U.S. warns China of potential sanctions over Hong Kong
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Brijesh Patel
May 25 (Reuters) - Gold prices fell in muted trade on Monday
as the dollar strengthened and share markets rose, though
lingering tensions between the United States and China limited
losses.
Spot gold XAU= was down 0.4% at $1,726.80 an ounce at 1233
GMT. U.S. gold futures GCv1 fell 0.5% to $1,727.60. Most
markets were closed in the United States, Britain and some Asian
countries for public holidays.
"The main driver probably is the dollar is slightly stronger
and also risk sentiment, in spite of renewed tensions between
the U.S. and China, that still seems to be on the positive
side," said UBS analyst Giovanni Staunovo.
The dollar .DXY rose against its key rivals, making gold
more expensive for holders of other currencies. MKTS/GLOB
European shares gained as optimism over easing lockdowns and
signs of further stimulus for the battered euro zone economy
bolstered sentiment. .EU
On the geopolitical front, China's proposed national
security legislation for Hong Kong could lead to U.S. sanctions,
White House National Security Adviser Robert O'Brien said on
Sunday. U.S.-China tensions have also become increasingly strained
over the source of the coronavirus pandemic, which has infected
more than 5.4 million people globally.
"Trade war tensions are on the rise, which should continue
to hold a bid under gold prices over the short term supported by
the bullish cocktail of economic, trade and geopolitical
factors," Stephen Innes, chief market strategist at financial
services firm AxiCorp, said in a note.
Indicative of sentiment, SPDR Gold Trust GLD holdings rose
0.4% to 1,116.71 tonnes on Friday, while speculators increased
their bullish positions in COMEX gold and silver contracts in
the week to May 19. CFTC/ GOL/ETF
Elsewhere, palladium XPD= gained 1.3% to $1,970.23 an
ounce, while platinum XPT= dropped 1.4% to $828.35 and silver
XAG= slipped 0.7% to $17.05.