PRECIOUS-Gold gains ahead of U.S.-China trade talks; Platinum jumps 3%

* Bullion up nearly 8% this month
* Silver heading for biggest monthly gain since December
* Platinum at six-week high of $839.76/oz

(Adds comment, updates prices)
By Karthika Suresh Namboothiri
June 28 (Reuters) - Gold prices held steady on Friday as
investors waited to see if a crucial round of U.S.-China trade
talks over the weekend would resolve the bilateral dispute,
while platinum surged more than 3%.
However, bullion was on track to mark its best month in
three years, up 8% in June alone, on the back of expectations
the U.S. Federal Reserve would ease monetary policy. Prices were
up 9.1% in the quarter, its biggest percentage gain since the
first quarter of 2016.
Spot gold XAU= was little changed at $1,409.33 per ounce
as of 1:35 p.m. EDT(1735 GMT). Prices surpassed the key
psychological $1,400 level earlier this week to reach $1,438.63
for the first time in six years.
U.S. gold futures GCcv1 settled 0.1% higher to $1,413.70
per ounce.
"There is some nervousness and uncertainty floating around
the trade war. ... We have seen a flock to safe haven as trade
tensions continue," said David Meger, director of metals trading
at High Ridge Futures.
Any easing of trade tensions could take away some safe haven
demand for the precious metal, Meger added.
U.S. President Donald Trump and China's President Xi Jinping
will meet during a Group of 20 summit this weekend in Osaka,
Japan, for talks that could help resolve a year-long trade war
between the two nations.
Meanwhile, the dollar .DXY was little changed, set for its
weakest month since the start of 2018. Bets on interest rate
cuts by the Fed have pushed the dollar index down 1.7% this
month. USD/
A weaker dollar makes greenback-denominated gold more
attractive for buyers with other currencies.
"We are still seeing huge investor interest in the precious
metal. Markets are pricing in growing expectation for two
interest rate cuts to the Fed's base rate in the next few
months," said Carlo Alberto De Casa, chief analyst with
ActivTrades.
"We can now see a first support area at the psychological
threshold of $1,400, while the first resistances are placed at
$1,424 and $1,440, the recent peaks.
Silver XAG= rose 0.3% to $15.30 per ounce. It has gained
5% in June alone, its biggest monthly gain so far in the year.
Palladium XPD= was down 0.5% to $1,543.01.
Platinum XPT= gained more than 3% to $839.76, its highest
since May 16.
"The surge in gold prices has caused traders to reassess the
whole precious metals space," said Rob Lutts, chief investment
officer at Cabot Wealth Management, adding that growing demand
for electric vehicle parts was also lifting platinum prices.
Traders would be watching out for Tesla Inc's TSLA.O
production figures expected next week, which could indicate
demand for electric vehicles, and hence industrial demand for
platinum and palladium, analysts said.