* Palladium bounces off 2-wk low hit in the previous session
* Market eyes Sino-U.S. trade talks, Brexit vote
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl (Updates prices)
By K. Sathya Narayanan
March 26 (Reuters) - Gold eased on Tuesday, after hitting one-month high in the previous session, as a slight recovery in share markets and U.S. Treasury yields reduced some of the precious metal's safe-haven appeal.
Spot gold XAU= was down 0.3 percent at $1,317.46 per ounce as of 0816 GMT, after touching its highest since Feb. 28 at $1,324.33 in the previous session.
U.S. gold futures GCcv1 were down 0.4 percent at $1,317.10 an ounce.
"Though concerns have gone up, we are not hundred percent sure there is going to be a recession as the yield curve inversion should be there for a whole quarter and not just for a day or two," said John Sharma, economist at the National Australian Bank.
The 10-year U.S. Treasury yield fell 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 an indicator of an economic recession. US/
However, U.S. 10-year Treasury yields edged up on Tuesday, lifting Asian shares, but the outlook remained murky as investors weighed the odds of whether the U.S. economy is in danger of slipping into recession. MKTS/GLOB
"Risk of a U.S economic slowdown has gone up and interest rates are on hold, which is giving some stimulus to gold, but it's not enough to sky rocket gold prices. Investors need more confirmation of further weakness in the economy," Sharma said.
U.S. Federal Reserve last week abandoned projections for any interest rate hikes this year. prices have gained more than 3 percent since early March, mainly on the back of a dovish Fed and concerns about a global economic slowdown.
On the technical front, a sharp rally from $1,282 towards$1,320 price level has created a small trading channel, which indicates that an immediate break should be around $1,326, said Ajay Kedia, director at Kedia Commodities in Mumbai.
"As long gold does not break the $1,326 level, it should be trading in range of $1,302 and $1,326," he added.
Market participants are also keeping a close watch on the latest round of Sino-U.S. trade negotiations, scheduled to start on Thursday in Beijing, and the next Brexit vote on Wednesday. positive developments from either of the geo-political issues will weigh on gold prices as investors appetite for riskier assets will rise, denting bullion's safe-haven appeal.
Among other precious metals, palladium XPD= slipped 0.6 percent to $1,566 per ounce, after touching its lowest in two weeks at $1,532.56 in the previous session.
Silver XAG= was down 0.4 percent at $15.48, while platinum XPT= dipped 0.3 percent to $852.30 an ounce.