* Gold saw worst one-day pct fall in nearly 2 weeks on Tues
* Market eyes Brexit vote at 1900 GMT
* GRAPHIC-2019 asset returns: (Updates prices)By Sumita LayekMarch 27 (Reuters) - Gold prices edged up on Wednesday asweak stock markets and falling bond yields reflected worriesabout a global economic slowdown and lifted safe-haven assets.Spot gold was up 0.1 percent at $1,316.61 per ounceas of 1323 GMT, after falling about 0.5 percent on Tuesday. U.S.gold futures were also up 0.1 percent, at $1,315.5 anounce.Concerns that the global economy will slow pushed bondyields lower, providing support for gold.
"The falling yields are reducing the opportunity cost ofholding the bullion, which is supportive for gold prices," saidQuantitative Commodity Research analyst Peter Fertig.The 10-year U.S. Treasury yield fell further ,having fallen below the yield for three-month bills on Friday for the first time since 2007, inverting the yieldcurve. An inversion is widely seen as indicating an economicrecession. Global equity markets nudged down on Wednesday as investorshoped central bank action in the world's biggest economies couldtemper some of the slowdown in global growth. However, a stronger U.S. dollar was acting as aheadwind to gold, analysts said. The index was up 0.1 percentand hit its highest in two weeks earlier in the session.
Facing rising threats to growth, the European Central Bankcould further delay a planned increase in interest rates if itneeds to and may look at measures to mitigate the effects ofnegative interest rates, ECB President Mario Draghi said onWednesday.In the latest economic data from the United States,homebuilding fell more than expected in February, while consumerconfidence ebbed in March, offering more evidence of a sharpslowdown in economic activity early in the year. "There clearly is a slowdown in the global economy and if westart seeing more signs of a potential recession, that should beeven more constructive for gold," said ING analyst WarrenPatterson.Gold has gained more than 13 percent since touching morethan 1-1/2-year lows last August, on the back of a dovish U.S.Federal Reserve and global growth concerns.Market participants are now keeping a close eye on theBritish parliament's vote on Brexit plans scheduled at 1900 GMT.British Prime Minister Theresa May is expected to indicate adate for quitting her post as the price for getting hertwice-defeated Brexit deal ratified, while parliament tries toselect its own alternative from a multiple-choice list ofoptions. Indicative of investor sentiment, holdings in the world'slargest gold-backed exchange-traded fund, SPDR Gold Trust ,rose 0.41 percent to 784.26 tonnes on Tuesday.Among other precious metals, palladium was down 1.4percent at $1,517.95 per ounce.Silver was down 0.5 percent at $15.35 an ounce, whileplatinum was up 1.3 percent at $866.25.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Gold vs yields ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Sumita Layek and Nallur Sethuraman in Bengaluru;Editing by Susan Fenton)
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