* Easing of geopolitical risk negative for gold - analyst

* SPDR gold holdings down 0.4 percent on Monday

* Platinum edges up from five-month low hit a day earlier

(updates prices)

By Maytaal Angel

LONDON, May 22 (Reuters) - Gold edged up on Tuesday from a2018 low as the dollar fell from its five-month high, althoughrisk appetite in the broader financial markets kept the metal'sgains in check.

The dollar lost momentum following a rally prompted byrising U.S. bond yields and the prospect of a resolution toU.S.-China trade tensions. A weaker dollar makes dollar-pricedgold cheaper for non-U.S. investors.

Washington and Beijing both claimed victory on Monday as theworld's two largest economies stepped back from the brink of atrade war and agreed to hold further talks to boost U.S. exportsto China. urn:newsml:reuters.com:*:nL3N1SS1VH urn:newsml:reuters.com:*:nL2N1SS0B2

"This quarter and maybe going into next, gold will continueto struggle but the (positive) views on the U.S. economy areoverdone," said Philip Newman, director at Metals Focus.

"There are concerns over sizeable U.S. debt, there's the(U.S.) mid-term elections in November, there's enough out therethat could see the dollar eventually weaken and gold pricesstart to improve through the back end of this year."

Spot gold XAU= edged up 0.2 percent to $1,294.91 per ounceby 1158 GMT. In the previous session, it slid to $1,281.76, itslowest since Dec. 27.

U.S. gold futures GCcv1 for June delivery rose 0.3 percentto $1,294.60 per ounce.

Capping gains in gold, European shares inched to a nearfour-month high as an easing of pressure on Italian marketscoincided with China's latest move to open its economy to therest of the world.

Gold, regarded as a safe haven, tends to weaken when thereis strong investor appetite for equities, seen as riskierassets.

"The overriding narrative here is where the dollar isgoing," said Stephen Innes, APAC trading head at OANDA. Abatinggeopolitical risk was also weighing on sentiment for gold, headded.

Meanwhile, expectations that the Federal Reserve will raiseU.S. interest rates again next month added to downward pressureon gold. Higher U.S. rates tend to boost the dollar and pushbond yields up, making non-yielding assets such as bullion lessattractive. FEDWATCH urn:newsml:reuters.com:*:nN9N1GG02O

Innes said any drop to somewhere around the $1,275 levelwould start to attract more bullish sentiment. "But in themeantime the driver is going to remain the U.S. dollar," headded.

Holdings in SPDR Gold Trust GLD , the world's largestgold-backed exchange-traded fund, fell 0.38 percent to 852.04tonnes on Monday. urn:newsml:reuters.com:*:nEMN3IACAF

Silver XAG= rose 0.8 percent to $16.60 an ounce, whilepalladium XPD= fell 1.4 percent to $975.72 an ounce.

Platinum XPT= climbed 1.4 percent to $908.50 an ounce,after marking a low for the year in the previous session at$873.50.

(Additional reporting by Karen Rodrigues and Apeksha Nair inBengaluru; Editing by Dale Hudson and David Stamp) ((maytaal.angel@thomsonreuters.com(00442075429105)(ReutersMessaging: maytaal.angel.thomsonreuters.com@reuters.net))