* Market awaits Trump decision on Iran nuclear deal
* Spot gold may revisit May 1 low of $1,301.51/oz -technicals (Updates prices, headline; adds comment, second byline, NEWYORK to dateline)By Renita D. Young and Maytaal AngelNEW YORK/LONDON, May 8 (Reuters) - Gold prices were flatfollowing a brief increase on Tuesday after the U.S. dollarbacked down from a new 2018 high as worries hovered that theUnited States may be set to pull out of a key nuclear accordwith Iran.Spot gold was flat at $1,313.76 per ounce by 1:32p.m. EDT (1732 GMT), while U.S. gold futures for Junedelivery settled down $0.40, or 0.03 percent, at $1,313.70 perounce.
U.S. President Donald Trump is expected to announce at 2p.m. EDT (1800 GMT) that he is pulling out of the Iran nucleardeal, European officials said, after they struggled to persuadehim that the accord has halted Iran's nuclear ambitions. "If Trump pulls out, I reckon gold will pop higher, but Idoubt it will stay elevated for too long," said Forex.com'sFawad Razaqzada.The decisions to leave the accord should raise risk aversionin the broader markets, helping gold, seen as a safe asset thatholds its value in times of geopolitical turmoil, though bullionis still pressured by a stronger dollar, in which it is priced."It must be the dollar which is providing the majorinfluence on (gold's) direction," said Razaqzada. "However, goldhas held its own relatively better than the euro in the dollar'sslipstream, suggesting that there is a degree or two of safehaven flows into the precious metal."
Against a commodity basket, the greenback earliersurged to a 2018 high helped by safe haven flows linked to theTrump announcement on Iran and as expectations that other majorcentral banks would follow the footsteps of the U.S. FederalReserve in normalising monetary policy have been dashed. India's gold imports in April fell for a fourth straightmonth from a year ago to 57 tonnes, on subdued demand afterlocal prices jumped to 21 month highs, provisional data fromconsultancy GFMS and bank dealers showed. In 2018, gold will deliver its strongest annual priceperformance in five years, GFMS analysts forecast, as politicaluncertainty drives investment in bars and bullion-backed funds. Spot gold may revisit its May 1 low of $1,301.51 per ounceas it twice failed to break resistance at $1,317, Reuterstechnical analyst Wang Tao said. 0Silver rose 0.2 percent at $16.47 an ounce, earlierhitting close to a one-week low at $16.30. Platinum gained 0.5 percent at $912.20 per ounce.Palladium fell 0.1 percent at $970.70 an ounce. (Additional reporting by Apeksha Nair in Bengaluru, editing byJon Boyle, Richard Balmforth and Cynthia Osterman)
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