PRECIOUS-Gold eases as trade deal hopes whet risk appetite

(Updates prices)
* European stocks at more than four-year high
* Trade deal may remove tariffs in phases -China
* Spot gold may retest support at $1,482/oz- technicals
* Graphic on 2019 asset returns: http://tmsnrt.rs/2jvdmXl

By Eileen Soreng
Nov 7 (Reuters) - Gold fell on Thursday, losing some of its
safe-haven appeal as signs of progress in U.S.-China trade
negotiations rekindled a rally in stock markets.
China and the United States have agreed to cancel, in
phases, the tariffs imposed during their protracted trade war,
the Chinese commerce ministry said, without specifying a
timetable.
Spot gold XAU= was down 0.4% at $1,485.02 per ounce at
1208 GMT, while U.S. gold futures GCcv1 fell 0.5% to
$1,485.90.
"There's excitement over the U.S.-China trade developments
and that's reducing appetite for safe-haven assets," said FXTM
analyst Lukman Otunuga.
An interim trade deal is widely expected to include a U.S.
pledge to scrap tariffs scheduled for Dec. 15 on about $156
billion worth of Chinese imports, including cell phones, laptop
computers and toys.
The tit-for-tat tariff war between the world's two biggest
economies for the past 16 months have roiled financial markets
and raised fears of a global economic slowdown, helping
safe-haven bullion rise nearly 16% this year.
"If the trade talks go further in a positive direction, we
will see more pressure on gold," said Vandana Bharti, assistant
vice-president of commodity research at SMC Comtrade.
"If prices fall below $1,480 an ounce, we will see a fresh
low at $1,465."
The trade deal optimism, coupled with largely positive
earnings reports from a host of companies, drove European shares
to their highest level in four years. .EU MKTS/GLOB
"Although equity markets are pushing higher, major
institutions are expressing concerns over the global economy,"
said FXTM's Otunuga, adding that low interest rates across the
world and slowing global growth should ensure gold remained
supported for the rest of 2019.
The euro zone economy is likely to grow slower than earlier
expected this year and next, the European Commission forecast on
Thursday, because of global trade conflicts, geopolitical
tensions and Brexit. Last month, the U.S. Federal Reserve cut interest rates for
the third time this year to help sustain American growth, but
signalled there would be no further reductions unless the
economy took a turn for the worse. Lower interest rates reduces the opportunity cost for
holding non-yielding gold.
Spot gold may retest a support at $1,482 per ounce, and a
break below this could lead to a drop to the Oct. 1 low of
$1,458.50, according to Reuters technical analyst Wang Tao.
Among other precious metals, silver XAG= dipped 0.5% to
$17.54 per ounce, platinum XPT= rose 0.1% to $930.40 per
ounce, while palladium XPD= gained 0.4% to $1,799.12 per
ounce.