June 2 (Reuters) - Gold prices climbed on Monday as U.S.

President Donald Trump threatened to double tariffs on imported

steel and aluminum, while a weaker dollar also supported

greenback-priced bullion.

FUNDAMENTALS

* Spot gold was up 0.6% at $3,309.89 an ounce, as of

0056 GMT. U.S. gold futures also climbed 0.6% to

$3,333.30.

* The U.S. dollar index edged 0.1% lower, making

bullion less expensive for overseas buyers.

* Trump said on Friday that he plans to raise tariffs on

imported steel and aluminum to 50% from 25%, prompting the

European Commission to warn that Europe is prepared to

retaliate.

* Geopolitical tensions escalated as Ukraine and Russia

sharply ramped up the war with one of the biggest drone battles

of their conflict, a Russian highway bridge blown up over a

passenger train and an ambitious attack on nuclear-capable

bombers deep in Siberia.

* Gold is considered as a safe-haven asset during

geopolitical and economic uncertainty.

* Meanwhile, Trump and Chinese President Xi Jinping are

expected to speak soon to iron out trade issues including a

dispute over critical minerals, according to Treasury Secretary

Scott Bessent on Sunday.

* On Friday, the U.S. Personal Consumption Expenditures

Price index saw a year-on-year increase of 2.1% in April, versus

a 2.2% forecast.

* Investors now see a 50-basis-point rate cut by the U.S.

Federal Reserve this year, starting in October.

* Fed Governor Christopher Waller said that interest rate

cuts remain possible later this year even as the Trump

administration's tariff regime is likely to push up price

pressures temporarily.

* Elsewhere, spot silver rose 0.2% to $33.04 an

ounce, platinum was down 0.2% at $1,054.28 and palladium

was steady at $970.79.

DATA/EVENTS (GMT)

0600 Nationwide House Price MM, YY

0750 HCOB Mfg PMI

0755 HCOB Mfg PMI

0800 HCOB Mfg Final PMI

0830 S&P Global Mfg PMI

1345 S&P Global Mfg PMI Final

1400 ISM Manufacturing PMI