PRECIOUS-Gold slips to more than 1-week low as Mexico tariff reprieve boosts equities

* Gold pulls back from last week's 14-month high
* Dollar steady near 2-1/2 month lows
* Palladium trading near six-week high
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

(Adds quote, updates prices)
By Eileen Soreng
June 11 (Reuters) - Gold fell to a more than one-week low on
Tuesday as the United States halted its plans to impose tariffs
on Mexico, boosting appetite for riskier assets like equities at
the expense of alternatives like bullion.
Spot gold XAU= was down 0.5% at $1,321.31 per ounce by
1210 GMT, having earlier hit its lowest since June 3 at
$1,319.35. U.S. gold futures GCv1 fell 0.4% to $1,324.1 an
ounce.
Concerns over global trade and expectations the Federal
Reserve would cut U.S. interest rates sent spot prices to their
highest since April 2018 last week at $1,348.08.
Bullion lost more than 1% on Monday after markets took heart
from a deal between the United States and Mexico to avert yet
another tariff war.
However, U.S. Secretary of State Mike Pompeo also warned the
U.S. could still slap tariffs on Mexico if not enough progress
was made on its commitment to stem illegal immigration.
"The outlook for the world economy has not changed and that
leads us to believe that the upside is still intact, but the
(gold) market needs weaker stocks and a weaker dollar to see
that through," Saxo Bank commodity strategist Ole Hansen said.
"Right now stocks are not weakening and that's creating
profit-taking," he said. "The continued recovery in stocks is
leading to recent established longs (in gold) being closed."
World shares rose after the latest trade news, though U.S.
President Donald Trump said he was ready to impose another round
of tariffs on Chinese imports if he cannot make progress in
trade talks at a Group of 20 summit later this month.
MKTS/GLOB
Gold also held above key technical levels as rising
expectations for a U.S. rate cut kept the dollar .DXY pegged
near a 2-1/2 month low against a basket of major currencies.
USD/
Market focus is now on the Fed's June 18-19 policy meeting
and what kind of signals the central bank could provide
regarding monetary policy direction.
"The communication (from the Fed) recently has been quite
dovish so if they do not continue in that momentum, then we will
probably see a bit more downside on gold prices," said ABN AMRO
analyst Georgette Boele.
Among other precious metals, silver XAG= was steady at
$14.66 per ounce, while platinum XPT= was up 0.1% to $802.89
an ounce.
Palladium XPD= rose 0.3% to $1,386.75 per ounce after
hitting a more than one-month high of $1,393.53 in the previous
session.