March 6 (Reuters) - Gold prices edged up early on Tuesday ona softer dollar, amid worries about a global trade war even asU.S. President Donald Trump faced pressure from political andtrade allies over his plan for steel and aluminum tariffs.
FUNDAMENTALS
* Spot gold XAU= was trading up 0.2 percent at $1,322.88per ounce at 0117 GMT.
* U.S. gold futures GCcv1 for April delivery rose 0.3percent to $1,323.70 per ounce.
* The dollar index .DXY , which measures the greenbackagainst a basket of major currencies, was down 0.2 percent at89.891.
* Asian shares regained some ground on Tuesday after U.S.President Donald Trump faced growing pressure from politicalallies to pull back from proposed steel and aluminium tariffs,easing investor worries about an imminent trade war. MKTS/GLOB Mexican and U.S. officials pushed on Monday to speed upNAFTA negotiations, with the United States floating the idea ofreaching an agreement "in principle" in coming weeks to avoidpolitical headwinds later this year. Chancellor Angela Merkel said on Monday she would workwith France to tackle pressing issues such as trade policy, thewar in Syria and competition with China after the SocialDemocrats (SPD) approved joining a coalition with herconservatives. Two anti-establishment leaders made early plays to governItaly on Monday, triggering concern in the euro zone followingan inconclusive election where voters shunted mainstream partiesto the sidelines. The uncertainty surrounding Italy's election vote has noimmediate impact on the country's sovereign credit rating,ratings firms S&P Global and DBRS said on Monday. China aims to expand its economy by around 6.5 percentthis year, the same as in 2017, while pressing ahead with itscampaign to reduce risks in the financial system, Premier LiKeqiang said Monday.