(Adds comments, updates prices)
* Fed delivers first emergency rate cut since 2008
* U.S. ISM non-mfg PMI data, Fed's Beige Book awaited
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
By K. Sathya Narayanan
March 4 (Reuters) - Gold edged lower on Wednesday, reversing course from a 3% surge in the previous session following a surprise rate cut by the U.S. Federal Reserve as equities and the dollar regained some ground.
Spot gold XAU= slipped 0.2% to $1,636.13 per ounce as of 0838 GMT, having risen as much as 0.7% earlier in the session and registered its biggest one-day percentage gain since 2016 on Tuesday.
U.S. gold futures GCcv1 slipped 0.4% to $1,637.20 per ounce.
"In the very short term, gold has perhaps reached its upside limit as this rate cut is priced in," CMC (NS: CMC ) Markets analyst Margaret Yang Yan said.
A broad uptick in risk-on sentiment and a rebound in the dollar index are weighing on gold, she added.
The U.S. stock futures rose over 1% and European shares inched up, recovering from weakness in global equities earlier as the emergency cut from the Fed seemed to stoke rather than soothe fears over the virus' widening economic fallout. .N .EU MKTS/GLOB
The dollar also inched up from a two-month low touched on Tuesday. USD/
The Fed trimmed interest rates by 50 basis points on Tuesday in an emergency move, its first cut outside of a regularly scheduled policy meeting since 2008. markets may be viewing the rate cuts as a positive catalyst now, unlike during the U.S. session, CMC's Yan said.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Investors awaited the release of the U.S. ISM non-manufacturing PMI data and the Fed's Beige Book of economic condition later in the day.
The gold market has discounted the fact that any data will come on the lower side and any impact from the ISM numbers will be temporary, said Jigar Trivedi, a commodities analyst at Anand Rathi Shares and Stock Brokers in Mumbai.
On the technical front, the immediate support is around $1,630 an ounce while the resistance lays around $1,660, he added.
Demand for platinum from the auto industry will rise this year for the first time since 2016 but it won't be enough to offset a decline in investment buying, leaving the global market in surplus again, the World Platinum Investment Council said.
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