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.
* Spot gold had edged uo 0.2% to $1,286.89 per ounce as of 0129 GMT.
* U.S. gold futures also gained 0.2%, to $1,285.50 an ounce.
* The U.S. dollar 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.
* 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 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
* 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.
* 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.
* 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.
* 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.
(Reporting by Arijit Bose in Bengaluru; Editing by Joseph Radford)
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