PRECIOUS-Gold pares gains on U.S.-China trade war optimism

* Trump says will meet with Xi, trade talks set to restart
* ECB to ease policy again if inflation fails to
accelerate-Draghi
* Fed due to release its latest statement on Wednesday
* Gold may break support at $1,337/oz, fall to $1,324-
technicals
* Palladium hits 12-week high

(Updates prices)
June 18 (Reuters) - Gold prices pared gains on Tuesday after
U.S. President Donald Trump confirmed he would meet with Chinese
President Xi Jinping at an international summit, fanning hopes
for a quick end to the U.S.-China trade dispute.
Earlier in the session, gold prices had briefly surged to 1%
after central banks in Europe and the United States hinted at
monetary easing.
Spot gold XAU= gained 0.5% to $1,345.70 per ounce as of
1:32 p.m. EDT (1732 GMT). Prices had risen to $1,354.20 earlier,
before Trump said in a tweet he had a "very good telephone
conversation" with China's Xi.
The two leaders will meet at the G20 meet later this month
in Japan, where the discussions will focus on trade in the midst
of a bitter tariff spat, that has upset global markets since its
conception a year ago. U.S. gold futures GCcv1 settled 0.6% higher at $1,350.7
per ounce.
"We are seeing a bit of a resurgent in risk appetites," said
Bart Melek, head of commodity strategies at TD Securities in
Toronto, adding that equities have moved higher, which has
helped the dollar.
"Commodities on the risk side have gone up and gold has
traded lower, on the back of the agreement between the U.S. and
China on the trade side."
Equity markets rallied following Trump's comments while the
dollar index .DXY held tight at two-week highs. USD/
MKTS/GLOB
European Central Bank President Mario Draghi said the bank
would need to ease policy again with tepid inflation, while
markets expect the U.S. Federal Reserve to cut interest rates
later this year. "Traders are looking at an immediate future for easing money
from central banks, which should see gold trading higher for the
time being," said Bob Haberkorn, senior market strategist at RJO
Futures.
Spot gold may break a support at $1,337 per ounce and fall
to the next support at $1,324, according to Reuters technical
analyst Wang Tao. "As long as gold holds the $1,333 level intraday, it is good
for bullion," said Michael Matousek, head trader at U.S. Global
Investors. "Prices ran up after expectations from central banks,
but there has been no definitive answers to retain those levels
on an intraday basis."
Other precious metals rose as well, with silver XAG=
gaining 1.1% to $15 per ounce and platinum XPT= up 1.4% at
$802.75.
Palladium XPD= rose 2.2% to $1,481.51 per ounce, after
hitting $1,489.03 the session, its highest level since March 27.