* 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 (Recasts, updates prices, adds details/quote; changes dateline)
By Maytaal Angel
LONDON, March 7 (Reuters) - Gold prices slipped on Wednesdayon profit taking after hitting a one-week high earlier on newsthat a top economic advisor to the Trump administration hadresigned, stoking fears of a trade war and knocking down thedollar.
Market watchers said the departure of economic adviser GaryCohn, a former Wall Street banker, would embolden protectionistforces in the U.S. administration as U.S. President Donald Trumptries to impose hefty tariffs on steel and aluminium.
The dollar hovered near a 14-month low against the yen,while global equities fell. Equity futures pointed to the U.S.S&P 500 index ESc1 opening percent lower, extending Tuesday'sfalls, which followed the Cohn resignation. MKTS/GLOB
Spot gold XAU= was down 0.1 percent at $1,332.91 per ounceat 1112 GMT, after touching $1,340.42, its highest since Feb.26. U.S. gold futures GCcv1 for April delivery fell 0.1percent to $1,333.80 per ounce.
"Yesterday's sharp gains in gold have come under a bit ofpressure amid profit-taking. The market remains in ranges (with) conflicting macro fundamentals in play," said Fawad Razaqzadaanalyst at Forex.com.
"On the one hand the prospect of a trade war should bepositive for gold, but bond yields are holding up, and NorthKorea should be another negative for gold, hence why moves ineither direction don't last."
Trump said on Tuesday he saw "possible progress" regardingNorth Korea after South Korea said Pyongyang is willing to holdtalks with the United States on denuclearization and willsuspend nuclear tests while discussions are underway. 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
Asian gold-backed exchange-traded funds (ETFs) added moretonnes in February than North America or Europe, reversingAsia's 2017 trend of having more flows out, the World GoldCouncil said on Tuesday other precious metals, silver XAG= fell 0.4 percent to$16.67 per ounce, after hitting its highest in more than twoweeks on Tuesday. Platinum XPT= dipped 0.9 percent to $960.60per ounce.
"Silver increased (on Tuesday) almost twice as sharply asgold, pushing the gold/silver ratio slightly below 80 again. Inhistorical terms silver is still far too cheap, however – and inour opinion unjustifiably so," said Commerzbank (DE:CBKG) in a note.
Palladium XPD= declined 1.1 percent to $972.80 per ounce.It hit $971 an ounce, its lowest since Feb. 9, earlier in thesession.