* U.S. dollar, stocks down after Trump economic advisorexits
* Gold hits 1-wk high, climbing up from 2-mth lows last week
* Spot gold XAU= may fall to $1,327/oz - technicals
* Palladium falls to lowest in nearly one month (Updates prices)
By Nithin ThomasPrasad
March 7 (Reuters) - Gold prices slipped on Wednesday afterhitting a one-week high earlier as the dollar weakened andequities dropped after U.S. President Donald Trump said he wouldpush ahead with punitive tariffs on imports, rekindling fears ofa potential trade war.
Spot gold XAU= was down 0.1 percent at $1,333.15 per ounceas of 0747 GMT, after touching $1,340.42, its highest since Feb.26, earlier in the session.
U.S. gold futures GCcv1 for April delivery fell 0.07percent to $1,334.20 per ounce.
"Volatility in risk assets, and concerns around theimplications of Trump's tariff rhetoric has helped propel goldhigher," said Jordan Eliseo, chief economist at gold trader ABCBullion.
Global stocks and the dollar fell after a key advocate forfree trade and Trump's top economic adviser, Gary Cohn, resignedafter the president said he was sticking with plans to imposetariffs on imports, which some critics have dubbed the firstshot in a global trade war. USD/ MKTS/GLOB
Last Thursday, Trump had said a plan for tariffs of 25percent on steel imports and 10 percent on aluminium productswould be formally announced this week.
Traders fear the departure of Cohn, a former Wall Streetbanker, would embolden protectionist forces in the U.S.administration as Trump tries to impose hefty tariffs.
"Prices will remain firmly supported ... from Cohn'sdeparture as the tariff gambit hits the market again with bluntforce," said Stephen Innes, APAC trading head at OANDA.
Cohn's resignation also offsets pressure from recoveringrisk appetites that followed Tuesday's news of North and SouthKorea holding their first summit in over a decade, and that cameafter the South said the North expressed willingness to discussdenuclearization with the United States. is used as an alternative investment during times ofpolitical and financial uncertainty, and a weaker dollar makesthe metal cheaper for holders of other currencies.
Spot gold XAU= may fall to $1,327 per ounce following itsfailure to break above $1,342, according to Reuters technicalanalyst Wang Tao. TECH/C
Meanwhile, Asian gold-backed exchange-traded funds (ETFs)added more tonnes in February than North America or Europe,reversing Asia's 2017 trend of having more flows out, the WorldGold Council said on Tuesday other precious metals, silver XAG= fell 0.2 percent to$16.70 per ounce, after hitting its highest in more than twoweeks. Platinum XPT= dipped 0.9 percent to $959.74 per ounce.
Palladium XPD= declined 1.2 percent to $973.72 per ounce.It hit $971 an ounce, its lowest since Feb. 9, earlier in thesession.