* 10-year U.S. Treasury yield edges up
* Market eyes China-U.S. trade talks, Brexit vote
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl (Updates prices and adds comment)
By Sumita Layek
March 26 (Reuters) - Gold fell on Tuesday, retreating from a near one-month peak hit in the previous session, as equity markets regained some ground following a sharp slide driven by fears of a global slowdown, and bond yields edged up.
Spot gold XAU= was down 0.3 percent on the day at $1,317.58 per ounce by 1318 GMT. It hit $1,324.33 on Monday, the highest since Feb. 28.
U.S. gold futures GCv1 were down 0.5 percent at $1,316.4.
"We have a bit of recovery in the equity markets, risk sentiment is positive; that is a little bit of a drag on gold," Julius Baer analyst Carsten Menke said.
Some profit-taking after prices recovered over the past few days, as well as rebounding U.S. bond yields, were also weighing on gold, Menke added.
Calm returned to global markets as a steadier day for Europe and Asia's bourses and a tick higher in benchmark bond yields helped ease nerves after a few days dominated by recession worries. MKTS/GLOB
The 10-year U.S. Treasury yield edged up US10YT=RR , having fallen below the yield for three-month bills US3MT=RR on Friday for the first time since 2007, inverting the yield curve. An inversion is widely seen as indicating an economic recession. US/
"It is unlikely there will be a recession, but it's very clear to us that there is a substantial slowdown occurring in the U.S. and that growth will be markedly lower than last year," Capital Economics analyst Ross Strachan said.
"Gold will pick up and end the year at $1,400. The market sentiment will become more risk averse, and that will be a boost to gold because of the sluggish global economy we are expected to see in both the United States and China."
Gold has gained about 14 percent since touching more than 1-1/2-year lows last August, on a dovish U.S. Federal Reserve and global growth concerns.
Investors are now keeping a close eye on the latest round of China-U.S. trade negotiations starting on Thursday and the next Brexit votes on Wednesday. other precious metals, palladium XPD= dipped 1.8 percent to $1,548.30 per ounce, after touching its lowest in about two weeks at $1,532.56 on Monday.
"We suspect the (palladium) market has in fact topped," Commerzbank (DE:CBKG) said in a weekly technical note.
Key short term support for palladium, which has retreated since hitting an all-time high of $1,620.53 last week on a stark supply shortfall, lay around $1,491, it added.
Silver XAG= was down 0.3 percent at $15.48 an ounce, while platinum XPT= was unchanged at $855.29.