PRECIOUS-Gold edges lower as fears of all-out U.S.-China trade war ease

    April 5 (Reuters) - Gold prices fell on Thursday, after
hitting a one-week high in the previous session, as the dollar
steadied and equities recovered on the United States's
willingness to negotiate on tariffs with China, easing fears of
a full-blown trade war.
    
    FUNDAMENTALS  
    * Spot gold        was down 0.2 percent at $1,331 per ounce
as of 0052 GMT, and the U.S. gold futures         fell 0.4
percent to $1,335.10 an ounce.
    * Retaliation from China, the world's largest gold consumer,
lifted spot gold prices to a one-week high of $1,348.06 per
ounce on Wednesday as the U.S. dollar tumbled against the yen
and equities dipped.
    * The dollar held steady against the yen on Thursday after
recovering against the safe-haven Japanese currency as stocks
bounced back from a sell-off triggered by an escalating
U.S.-China trade spat.                   
    * The United States voiced willingness on Wednesday to
negotiate a resolution to an escalating trade fight with China
after Beijing retaliated against proposed U.S. tariffs on $50
billion in Chinese goods by targeting key American imports, but
the Chinese ambassador to Washington said it "takes two to
tango."             
    * The United States and China should avoid a trade war,
China's Ambassador to the United States Cui Tiankai said on
Wednesday, stressing that Beijing's preference was to resolve
the dispute through negotiations.             
    * U.S. private payrolls increased solidly in March as hiring
rose across the board, pointing to a robust labour market that
continues to underpin economic growth.             
    * The U.S. Federal Reserve does not need to raise its
benchmark interest rate much further given how close it is to
the neutral rate, St. Louis Fed President James Bullard said on
Wednesday.             
    * Investors gashed U.S.-based stock funds, withdrawing
billions of dollars for the second straight week, Investment
Company Institute (ICI) data showed on Wednesday.             
    * Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, fell 0.03 percent to 852.03
tonnes on Wednesday from 852.31 tonnes on Tuesday.          
    * Canada's Eldorado Gold Corp          said on Wednesday it
received a positive ruling from arbitrators on its planned
metallurgy plant in Greece, but is awaiting mine development
permits as it considers its next steps.             
    * Ghana plans to review its process for granting corporate
tax exemptions to mining and oil companies as part of measures
to eliminate fraud and boost revenues, its vice president said
on Wednesday.             


    DATA AHEAD (GMT)
    
    0600  Germany       Industrial orders           February
    0750  France        Markit services PMI         March
    0800  Euro zone     Markit services PMI final   March
    0855  Germany       Markit services PMI         March
    0900  Euro zone     Producer prices             February
    0900  Euro zone     Retail sales                February
    1230  U.S.          Weekly jobless claims
    1230  U.S.          International trade         February

 (Reporting by Swati Verma in Bengaluru
Editing by Eric Meijer)