PRECIOUS-Gold muted as investors await trade deal details; palladium falls

Published 18/12/2019, 07:50 pm
PRECIOUS-Gold muted as investors await trade deal details; palladium falls
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(Updates prices, adds comments, details)

* Dollar index near one-week high

* SPDR Gold Trust Holdings fall 0.6%

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By Asha Sistla

Dec 18 (Reuters) - Gold prices were largely subdued on Wednesday, with investors awaiting more details on the U.S.-China trade deal, while palladium retreated from last session's record peak.

Spot gold XAU= edged up 0.1% to $1,477.79 per ounce by 0824 GMT. U.S. gold futures GCcv1 rose 0.1% to $1,482.20.

"Gold is in sort of a holding pattern and one of the key reasons behind this is that the macro picture has been positive on the trade deal and it has obviously capped gold prices," said ING analyst Warren Patterson.

"But the main issue is they are not saying anything significant on the back of this deal and details around the trade deal are still lacking, there's that element of uncertainty."

U.S. Trade Representative Robert Lighthizer on Tuesday said details of Chinese purchases across various sectors in the United States in the "phase one" deal would be detailed in writing, but gave no further details about when the written agreement would be released. upside remained capped by positive U.S. economic data that underpinned the dollar and stock markets.

The dollar index .DXY hovered near a one-week high against a basket of rival currencies, while Asian shares camped out at 18-month peaks having climbed for five straight sessions. MKTS/GLOB USD/

U.S. manufacturing production recovered in November and housing numbers rose beyond expectations with permits for future home construction soaring to a 12-1/2-year high on lower mortgage rates. investor interest in bullion, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , fell 0.6% on Tuesday. GOL/ETF

"The SPDR gold exchange-traded funds (ETF) witnessed liquidation. But gold is not falling because of demonstrations by New Yorkers for U.S. President Donald Trump's impeachment," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers. is also fear of recession in Germany, and fear of no-deal Brexit," Trivedi said, adding that the outlook is still positive for gold next year. on Tuesday set a hard deadline of December 2020 to reach a new trade deal with the European Union, reviving fears of a chaotic exit from the bloc. XPD= fell 0.6% to $1,943.53 an ounce, retreating from an all-time peak of $1,998.43 hit in the previous session.

"The market set their sights on the key target, once we did that, we definitely did see some profit-taking - that's the reason we saw that price inflection," ING's Patterson said.

Silver XAG= rose 0.3% to $17.05 per ounce, while platinum XPT= advanced 0.2% to $929.21.

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