PRECIOUS-Gold rebounds as trade deal hopes fade, palladium hits record

(Recasts, updates prices)
* Palladium hits record high of $1,720.97/oz
* Overall gold's bullish trend intact - analyst
* Brexit hangs in the balance ahead of Brussels meeting

By Asha Sistla
Oct 14 (Reuters) - Gold gained on Monday as optimism over a
potential U.S.-China trade deal waned, while palladium notched
an all-time high driven by short supplies of the auto-catalyst
metal.
Spot gold XAU= was up 0.3% at $1,493.33 per ounce at 01:41
p.m. EDT (1741 GMT), after touching nearly a two-week low of
$1,473.90 in the previous session.
U.S. gold futures GCcv1 settled 0.6% higher at $1,497.6 an
ounce.
"Reassessment - which is why gold is seeing a little
fluctuation below 1,500, it's a reassessment of the Chinese
trade deal, the Brexit and of what the U.S. Federal Reserve may
or may not do going forward," said George Gero, managing
director at RBC Wealth Management.
"The dollar index is up and keeps gold from a major rally,
because international investors are buying U.S. securities using
dollars."
China wants to hold another round of trade talks by the end
of October to nail down further details before Chinese President
Xi Jinping agrees to sign the trade deal outlined by U.S.
President Donald Trump, Bloomberg reported. The dollar index against a basket of six major currencies
.DXY gained 0.2% and global stock markets dipped as trade
optimism flagged after the report. USD/ MKTS/GLOB
Meanwhile, U.S. Treasury Secretary Steven Mnuchin said an
additional round of tariffs on Chinese imports may be imposed if
a trade deal with China has not been reached by Dec. 15.
"The news that China wants to have more talks before the
trade deal is something that is sinking the optimism that came
on Friday after a big announcement from President Trump," said
Edward Moya, a senior market analyst at OANDA.
"Overall bullish trend (for gold) is intact. There's just
been a plethora of reasons why you're seeing demand from all
over the world."
On the European front, investors will be focused on a summit
between the European Union and Britain in Brussels later this
week, with a deal to smooth Britain's departure from the EU
hanging in the balance as diplomats indicated the bloc was
pushing for more concessions. In other precious metals, palladium XPD= climbed about 1%
to $1,715.49 an ounce. The auto-catalyst metal, which is in
short supply, hit a record high of $1,720.97 earlier in the
session.
Silver XAG= rose 0.8% to $17.67 per ounce and platinum
XPT= edged 0.1% higher to $890.12.