PRECIOUS-Gold tumbles nearly 2% as trade truce dents safe-haven demand

* Dollar hits more than one-week high
* Gold breaks below $1,400 per ounce
* SPDR Gold holdings fall 0.2% on Friday
* Platinum off from six-week highs

(Updates prices)
By Brijesh Patel
July 1 (Reuters) - Gold prices fell nearly 2% on Monday to
their lowest in more than a week as the dollar strengthened and
investors opted for riskier assets after the United States and
China agreed to restart trade talks.
Spot gold XAU= was down 1.7% at $1,384.81 per ounce as of
0724 GMT, after falling to its lowest since June 20 at
$1,381.51.
U.S. gold futures GCv1 dipped 1.8% to $1,388.20 an ounce.
"Reopening of trade talks between U.S.-China has made
investors look back at growth, we are seeing good support for
the share markets across the region and safe-havens are in less
demand," said Michael McCarthy, chief market strategist, CMC
Markets.
"We are likely to see increased volatility. Gold prices have
pulled back from an important technical level of around $1,430,
that could mean that we will see a test at support around the
$1,380 mark."
Gold rose to $1,438.63 an ounce on June 25, its highest
since May 14, 2013, as the U.S. dollar weakened and as investors
sought safe-haven assets on concerns about the escalation of the
nuclear dispute between the United States and Iran.
However, prices slid from there on hopes for renewed talks
to end the trade dispute between the United States and China,
the world's two largest economies.
That optimism was realized when the two sides agreed on
Saturday to restart trade talks after U.S. President Donald
Trump offered concessions including no new tariffs and an easing
of restrictions on tech company Huawei HWT.UL . The progress made on the sidelines of G20 summit between
Washington and Beijing lifted global financial markets, denting
the appeal for the safe-haven metal. MKTS/GLOB
Further pressuring gold prices, the dollar index .DXY
jumped to a more than one-week high on Monday, making
non-interest bearing bullion more expensive for holders of other
currencies. USD/
However, China and the United States will face a long road
before they can reach a deal to end their bitter trade war, with
more fights ahead likely, Chinese state media reported on
Sunday. "Although the downwards price reaction in gold to the trade
deal seems to be logical, we do think the jury is still not out
just yet on the ultimate result," INTL FCStone analyst Edward
Meir said in a note.
Meanwhile, holdings of the SPDR Gold Trust GLD , the
world's largest gold-backed exchange-traded fund, fell 0.22% on
Friday. GOL/ETF
Hedge funds and money managers boosted their bullish stance
in COMEX gold in the week to June 25, the U.S. Commodity Futures
Trading Commission said on Friday. Among other precious metals, silver XAG= fell 0.9% to
$15.17 per ounce and palladium XPD= was steady at $1,538.12.
Platinum XPT= eased 0.1% to $832.19 an ounce, falling from
a six-week peak touched in the previous session.