May 27 (Reuters) - Gold prices rose on Monday amid concerns
the Sino-U.S. trade war had started to take its toll on the U.S.
economy, weakening the dollar and raising hopes of a U.S.
Federal Reserve interest rate cut.
FUNDAMENTALS
* Spot gold XAU= had edged uo 0.2% to $1,286.89 per ounce
as of 0129 GMT.
* U.S. gold futures GCv1 also gained 0.2%, to $1,285.50 an
ounce.
* The U.S. dollar .DXY was little changed against a basket
of six major currencies, having fallen off a two-year peak in
the previous session after orders for U.S.-made capital goods
fell, further indicating that manufacturing and the broader
economy are slowing, due in part to the U.S.-China trade
dispute. FRX/
* China on Friday denounced U.S. Secretary of State Mike
Pompeo for fabricating rumours after he said the chief executive
of China's Huawei Technologies Co Ltd HWT.UL was lying about
his company's ties to the Beijing government. * Escalating trade tensions and weak data have fuelled
expectations of a rate cut from the U.S. Federal Reserve.
* Over the weekend, Trump repeated a complaint that the
Federal Reserve's policies had kept U.S. economic growth from
reaching its full potential. * Asia stocks edged up early on Monday, while the euro
barely budged in early Monday trade after pro-European Union
parties held on to two-thirds of seats in the EU parliament
elections, limiting gains in nationalist opponents. MKTS/GLOB
* Parties committed to strengthening the European Union held
on to two-thirds of seats in the EU parliament, official
projections from the bloc's elections showed on Sunday, though
far-right and nationalist opponents saw strong gains.
* Hedge funds and money managers sharply reduced their net
long positions in COMEX gold in the week to May 21, the U.S.
Commodity Futures Trading Commission (CFTC) said on Friday.
CFTC/
* Gold prices in India flipped into premiums last week on
firmer demand in the domestic market, while buyers in top
consumer China took advantage of weaker bullion prices and
stepped up purchases. GOL/AS
* Gold exports from Mali increased by 15.4% to 61.63 tonnes
in 2018, up from 53.4 tonnes in 2017, the West African nation
said on Friday, mostly owing to stronger industrial production.