CORRECTED-PRECIOUS-Gold eases as dollar bounces back from multi-week lows

(In the ninth paragraph, corrects Shinzo Abe's title to prime
minister from president)
* Spot gold off one-week high hit in previous session
* Bitcoin hits over one-year high on Monday

By Sethuraman N R
May 28 (Reuters) - Gold prices inched lower on Tuesday,
dropping for the first time in four sessions, as the dollar
rebounded from multiweek lows amid simmering U.S.-China trade
tensions and as bullion failed to surpass a strong technical
resistance.
Spot gold XAU= was down 0.2% at $1,282.86 per ounce, as of
0702 GMT, after touching its highest since May 17 at $1,287.32
in the previous session.
U.S. gold futures GCv1 were down 0.1% at $1,281.80 an
ounce.
"The price action in gold has been a little bit
disappointing and pretty negative. It has not been able to break
above $1,290-$1,300 despite the given background of trade
tensions, pause in the Fed and volatile equity markets," said
Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.
"Some of the money flows are moving to bitcoin. Seems like
the cryptocurrencies are eating gold for lunch at the moment ...
Also, there is nothing at present which is looking to undermine
the dollar strength."
Against a basket of six peers, the dollar .DXY gained 0.2%
to 97.806 after touching its lowest since May 16 at 97.546 on
Friday.
The greenback nudged up on Tuesday against its key rivals as
investors waited on more catalysts after the European Union
parliamentary elections showed a polarisation of the 28-member
block. USD/ Bitcoin BTC=BTSP , which had touched $8,939.18, its highest
level in more than a year on Monday, was last up 0.4% at
$8,810.82. On May 13, the cryptocurrency topped $8,000 for the
first time since July 2018.
Meanwhile, U.S. President Donald Trump said on Monday in a
news conference with Japanese Prime Minister Shinzo Abe that he
was "not ready to make a deal with China", the latest blow to
beliefs that the two countries might reach a deal soon.
A string of weak data from the United States late last week
stirred up concerns that its protracted trade war with China has
started taking a toll on the country's economy, and promoted
bets for a much-expected rate cut by the U.S. Federal Reserve. Signals are mixed for spot gold as it failed twice to break
a resistance at $1,286 per ounce, according to Reuters technical
analyst Wang Tao. seems to have found a base around $1,270 despite
failing to break much higher, analysts said.
"Gold is set to improve and trend toward $1,300," analysts
with TD Securities said in a note.
"Lower rates, a flat (yield) curve and a growing likelihood
of rising equity market volatility are all helping gold,
suggesting buying the dips may well be the order of the day in
the precious space."
Among other precious metals, silver XAG= dipped 0.4% to
$14.53 per ounce, while palladium XPD= rose 0.4% to $1,341.
Platinum XPT= edged 0.4% higher to $809.32 an ounce.

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