* Money managers cut net longs in gold in week to May 21- CFTC
* Gold may retest resistance at $1,290 - analyst
By Arijit Bose
May 27 (Reuters) - Gold prices touched a more than one-week high
on Monday as fears of a protracted U.S.-China trade war hurt risk
sentiment, while poor economic data from the United States bolstered
bets of a U.S. Federal Reserve rate cut.
Spot gold edged 0.1% higher to $1,286.21 per ounce as of 0714
GMT. Earlier in the session, the metal touched $1,287.32, its highest
since May 17.
U.S. gold futures gained 0.2%, to $1,285.60 an ounce.
"Gold has really reversed earlier losses as risk appetite in
the market remains rather shaky," said Benjamin Lu, an analyst
with Singapore-based Phillip Futures.
"U.S. sanctions on Huawei and even the rest of the Chinese
technology firms have really aggravated trade tensions."
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.
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 Federal Reserve.
Over the weekend, U.S. President Donald Trump repeated a complaint
that the Federal Reserve's policies have kept U.S. economic growth
from reaching its full potential.
Further uncertainties emerged after British Prime Minister Theresa
May said on Friday she would quit after failing to deliver Brexit,
setting up a contest that will install a new British prime minister
who could pursue a cleaner break with the European Union.
"The rise of volatility triggered by geopolitics benefited
the yellow metal and if the UK political game of thrones and
U.S.-China trade keep uncertainty levels high, gold could once again
jump above $1,300," Alfonso Esparza, senior market analyst at
OANDA, said in a note.
The U.S. dollar was struggling against a basket of six major
currencies, having fallen off a two-year peak in the previous session
due in part to the U.S.-China trade dispute, making gold cheaper for
holders of non-U.S. currencies.
Gold may retest a resistance at $1,290 an ounce, a break above
which could lead to a gain to the next resistance at $1,295, according
to Reuters technical analyst Wang Tao.
Meanwhile, 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.
Among other precious metals, silver rose 0.3% to $14.61 per
ounce, while palladium fell 0.4% to $1,329.90.
Platinum rose 0.3% to $804.50 an ounce.
(Reporting by Arijit Bose in Bengaluru; Editing by Joseph Radford and
((Arijit.Bose@thomsonreuters.com; Within U.S. +1 651 848 5832,
Outside U.S. +91 8067495254; Reuters Messaging: Arijit.Bose.email@example.com))