(Adds comment, updates prices)
* Mnuchin: U.S.-China to sign trade pact in January
* Palladium set to gain for a fifth straight week
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl
By Asha Sistla
Dec 20 (Reuters) - Gold edged lower in range-bound trade on Friday, pressured by increased risk appetite on hopes of an interim Sino-U.S. deal being signed soon, while investors awaited U.S. GDP data for fresh cues on the state of economy.
U.S. Treasury Secretary Steven Mnuchin said on Thursday the United States and China would sign their so-called Phase one trade pact at the beginning of January, adding that it would not be subject to any renegotiation. gold XAU= fell 0.1% to $1,477.95 per ounce by 0808 GMT. U.S. gold futures GCv1 were down 0.2% to $1,481.90 per ounce.
"The real driver for gold markets has been trade-war risk and with its de-escalation in phase one on the back of Mnuchin's comments is not bullish for gold," said Stephen Innes, a market strategist at AxiTrader.
China's finance ministry unveiled a new list of import tariff exemptions for a duration of one year starting Dec. 26 for six chemical and oil products from the United States. easing of the trade dispute boosted share markets, with Asian stocks holding close to 18-month peaks. MKTS/GLOB
The dollar was steady, even as it was set to gain for the first week in four, supported by better-than-expected U.S. economic data. USD/
The initial U.S. jobless claims report was strong with applications for unemployment benefits slipping from a more than two-year high. now await U.S. gross domestic product data due out later on Friday.
"Gold is consolidating at the top of its recent range with the dollar a bit stronger and a positive risk environment," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.
"Doesn't look like anyone wants to take the market higher, the market seems really well-balanced at these levels for now."
Meanwhile, in Britain, Prime Minister Boris Johnson promised to "get the Brexit vote wrapped up for Christmas", following his landslide election victory. factors to watch for gold next year will be the second phase of the U.S.-China trade negotiations, the U.S. election, global monetary policy, and the investor response to these developments," Standard Chartered (LON:STAN) Bank analyst Suki Cooper said in a note.
Elsewhere, palladium XPD= rose 0.4% to $1,943.21 per ounce and was on track for a fifth straight week of gains.
Prices of the autocatalyst metal had hit an all-time peak of $1,998.43 on Tuesday on a sustained supply crunch.
Silver XAG= was flat at $17.06 per ounce, while platinum XPT= fell 0.2% to $931.91.