PRECIOUS-Gold slips from 1-month peak on Sino-U.S. trade talk hopes

* Gold to stay supported on trade worries in near term -
analysts
* Asian shares bounce off 3-1/2-month lows

(Adds details, comments and updates prices)
By Arijit Bose
May 15 (Reuters) - Gold prices steadied on Wednesday, having
retreated from a one-month peak hit in the previous session as
optimism surrounding trade talks between Washington and Beijing
soothed investor concerns, boosting global stocks and the
dollar.
Spot gold XAU= was steady at $1,296.49 an ounce by 0808
GMT.
U.S. gold futures GCcv1 edged 0.1% higher to $1,297.20 an
ounce.
"Gold is restrained as people are still interested in the
dollar. The $1,300 level also looks like a good resistance,"
said Peter Fung, head of dealing at Wing Fung Precious Metals in
Hong Kong.
The dollar held firm in early Asian trading, having been
supported on Tuesday by U.S. President Donald Trump downplaying
the recent escalation in his trade war with China as "a little
squabble" and insisting that talks between the two countries had
not collapsed. USD/ A stronger dollar makes gold more expensive for holders of
non-U.S. currency.
Simultaneously, Asian stocks also turned cautiously
optimistic surrounding trade developments between the two
countries on Wednesday, while still not completely discounting
the possibilities of a protracted spat. MKTS/GLOB
"The (gold) market is holding because some people bought
gold especially after the Chinese government also raised tariffs
on U.S. goods," Fung said, adding that the metal is expected to
remain range-bound between $1,280 and $1,310 an ounce.
The biggest trigger for gold, which had been mostly
range-bound for the past week, came on Monday after China
announced that it would impose retaliatory tariffs on a range of
U.S. goods. There was some profit-taking in the previous session after
prices jumped about $20 on Monday and above the key $1,300
level, analysts and traders said.
"The ongoing Sino-U.S. trade dispute has illustrated cooling
conditions as both parties expressed willingness to resolve
existing trade differences," Phillip Futures analysts wrote in a
note.
"Gold prices though easing up on bullish gains will remain
supported as investors remain cautious on lingering U.S.-China
trade worries in the near term."
Market participants now keenly eye economic data from Europe
that will provide further cues on the strength of the global
economy.
Among other precious metals, silver XAG= rose 0.2% to
$14.81 an ounce, while platinum XPT= fell 0.2% to $853.75.
Palladium XPD= fell 0.7% to $1,326.25 an ounce.