March 5 (Reuters) - Gold prices rose early on Monday as thedollar remained pressured amid fears of a global trade warfollowing U.S. President Donald Trump's decision to imposetariffs on imports of aluminum and steel.
FUNDAMENTALS
* Spot gold XAU= was up 0.2 percent at $1,324.13 an ounceat 0056 GMT. Prices rose 0.5 percent in the previous session,its biggest one-day percentage gain since Feb. 22.
* U.S. gold futures GCcv1 were up 0.2 percent at $1,325.4per ounce.
* The dollar index .DXY , which measures the greenbackagainst a basket of major currencies, was flat at 89.900, afterfalling against most currencies on Friday.
* Asian shares hovered near 2-1/2 week lows and thesafe-haven yen rose on Monday amid fears of a global trade war,while the euro pared gains as investors worried Italy's nationalelections could deliver an anti-establishment government. MKTS/GLOB USD/
* Trump struck a defiant tone on Friday, saying trade warswere good and easy to win, after his plan to put tariffs onsteel and aluminum imports triggered threats of retaliation fromtrading partners and a slide in stock markets. Germany's Social Democrats (SPD) decisively backed anothercoalition with Chancellor Angela Merkel's conservatives onSunday, clearing the way for a new government in Europe'slargest economy after months of political uncertainty. Italy's national elections are likely to produce a hungparliament, exit polls on Rai state television and privatechannel La 7 showed after voting ended on Sunday. Hedge funds and money managers increased their net shortposition in silver contracts to a record high in the week toFeb. 27, U.S. Commodity Futures Trading Commission (CFTC) datashowed on Friday. Gold dealers cut their net long position by 29,684contracts to 157,634 contracts in the week to Feb. 27, accordingto the CFTC. This was the lowest net long position since earlyJanuary.
DATA AHEAD (IN GMT)
0145 China
Caixin services PMI
Feb
0850 France
Markit services PMI
Feb
0855 Germany
Markit services PMI
Feb
0900 Euro zone
Markit services PMI final
Feb
0930 Euro zone
Sentix index
Mar
1000 Euro zone
Retail sales
Jan
1500 U.S.
ISM non-manufacturing PMI
Feb