PRECIOUS-Gold falls as U.S.-China trade stand-off weighs on yuan

* Gold stuck in neutral $1,284-$1,291/oz range -technicals
* SPDR Gold falls 0.9% on Friday
* Palladium to narrow deficit in 2019 -Metals Focus

(Adds quotes, updates prices)
By Brijesh Patel
May 13 (Reuters) - Gold prices fell on Monday as an
escalating trade conflict between Washington and Beijing weighed
on the yuan, denting demand in the world's biggest consumer of
the metal, China.
Spot gold XAU= was down 0.2% at $1,283.63 an ounce at 1031
GMT. U.S. gold futures GCcv1 slipped 0.3% to $1,284.20.
"Gold is trading a touch softer even though some of the
outside market should be providing support. Bond yields are
lower, stocks are lower and the dollar is also slightly down --
all gold-friendly developments," said Saxo Bank connodity
strategist Ole Hansen.
"We're seeing the negative impact from the yuan."
The yuan was set for its worst daily fall in nine months,
hurt by trade concerns, making gold expensive for buyers in
China. FRX/ USD/]
Trade tensions have plagued investors in wider markets, with
Washington increasing tariffs on $200 billion of Chinese goods
on Friday, raising the chances of a retaliation from Beijing.
The two biggest economies appeared to be deadlocked on
Sunday as Washington demanded promises of concrete changes to
Chinese law and Beijing said it would not swallow any "bitter
fruit" that harmed its interests. However, gold has been stuck in a $15 range over the past
week despite weakness in global equity markets. MKTS/GLOB
"Also, another market we don't watch often, bitcoin, seems
to be on fire once again," said Saxo Bank's Hansen.
"We've been seeing a strong move higher in bitcoin over the
past couple of weeks, which may also remove some demand for
alternative assets such as gold."
Bitcoin hovered close to nine-month highs as the biggest
cryptocurrency's 2019 rally gathered momentum. Gold also faced a barrier around $1,290, restricting buying
from traders who follow technical charts, analysts said.
"Gold's performance has been rather disappointing to both
bulls and bears alike," INTL FCStone analyst Edward Meir said in
a note.
Signals are mixed for spot gold, stuck in a neutral range of
$1,284-$1,291 an ounce, according to Reuters technical analyst
Wang Tao. On the investment side, holdings of SPDR Gold Trust GLD ,
the world's largest gold-backed exchange-traded fund, fell 0.9
percent on Friday. GOL/ETF CFTC/
Silver XAG= was down 0.6% at $14.66 an ounce while
platinum XPT= eased by 0.4% to $857.66 and palladium XPD=
droped 1.6% to $1,335.80.
Palladium will narrow its deficit in 2019 compared with
last year, while platinum's surplus is seen nearly doubling,
said research group Metals Focus. The World Platinum Investment Council (WPIC), however, said
that a surge in investment demand has reduced expectations of a
large surplus in the platinum market this year.