PRECIOUS-Gold prices tumble after Monday's surge

    * U.S. stock markets stabilize, dollar strengthens
    * Gold down 0.6 pct after rising 1.3 pct on Monday
    * Struggles to break from trading range
    * Funds raise bets on higher prices

 (Updates prices, headline; adds comment, second byline, adds
NEW YORK to dateline)
    By Renita D. Young and Peter Hobson
    NEW YORK/LONDON, April 3 (Reuters) - Gold prices fell on
Tuesday as U.S. stock markets stabilized, easing fears of a
deeper selloff, and the dollar strengthened, making bullion more
expensive for users of other currencies.
    Gold had surged on Monday as falling U.S. share prices and
fears of a global trade war pushed investors towards safer
    But while European stock markets continued to fall, led by
technology shares, Wall Street rebounded.             
    Spot gold        dropped 0.6 percent to $1,333.09 per ounce
by 1:35 p.m. EDT (1735 GMT), after rising 1.3 percent on Monday.
U.S. gold futures         for June delivery settled down $9.60,
or 0.7 percent, at $1,337.30 per ounce. 
    "Gold has given back some of its sharp gains from yesterday.
As well as a slightly positive tone in the stock markets, the
dollar has rebounded against both the euro and the yen," said market analyst Fawad Razaqzada. 
    "The potential for a dollar rally is there this week, with
Friday’s jobs report being the key event risk. Should the
greenback regain its poise then gold could come under further
    Gold has struggled to break from a $1,300-$1,360 per ounce
trading range since the start of the year. 
    "It's going to take a significant trigger to push it beyond
this range," said Danske Bank analyst Jens Pedersen. 
    One potential trigger is a trade dispute between the world's
two largest economies, with the Trump administration expected
this week to unveil a list of advanced technology Chinese
imports targeted for U.S. tariffs after Beijing raised tariffs
on 128 U.S. products.                          
    Gold is often used as a safe place to park assets during
times of financial or political uncertainty.
    Funds have raised their bets on higher prices.              
    Speculative investors have room to expand their long
positions further, which would help drive prices higher,
analysts at Citi said in a note. 
    Higher market volatility and rising tension between
Washington and Beijing will likely hold gold prices above $1,300
per ounce throughout 2018, they said. 
    "We assign a 30 percent probability that gold prices can
scale $1,400 an ounce this year." 
    Momentum indicators suggested gold prices would rise, with
technical Fibonacci support at $1,317.25 and resistance at
$1,361.80, analysts at ScotiaMocatta said in a note. 
    Meanwhile, spot silver        shed 1.1 percent to $16.42 an
ounce after rising 1.8 percent in the previous session.
    Platinum        dropped 0.3 percent to $926.60 an ounce,
earlier hitting $912, its lowest since Dec. 26.
    Palladium        lost 0.7 percent at $928.25 an ounce after
touching $927.25, its lowest since Oct. 10.

 (Additional reporting by Swati Verma in Bengaluru; editing by
Alexandra Hudson and Diane Craft)