PRECIOUS-Gold rises as risk sentiment sours on trade, Brexit uncertainty

* China-U.S. trade talks on Oct. 10-11
* FOMC minutes due at 1800 GMT Wednesday
* Silver tracks gold, hits over 1-week peak

(Updates prices)
By Asha Sistla
Oct 8 (Reuters) - Gold prices gained on Tuesday, bouncing
off a one-week low touched earlier in the session, as
uncertainties over U.S.-China trade talks and Brexit drove a
decline in stock markets and prompted investors to seek refuge
in the safe-haven metal.
Spot gold XAU= was up 0.4% at $1,499.67 per ounce at 01:37
p.m. EDT (1737 GMT) after rising as much as 1% to $1,508.31
earlier in the session.
U.S. gold futures GCcv1 settled mostly unchanged at
$1,503.9 an ounce.
Wall Street was lower, adding to declines in global stocks,
as sentiment soured ahead of high-level trade talks after a
report that Washington was moving ahead with efforts to limit
capital flows into China and with the inclusion of more Chinese
firms in a blacklist. MKTS/GLOB
"There's a possibility the U.S.-China trade talks will stall
based on this. That's the reason why there's a small flight into
safe-haven products," said Phillip Streible, senior commodities
strategist at RJO Futures.
"(However) gold is range-bound right now. There's $1,465 to
the downside and $1,566 on the upside. We're just stuck in this
range."
On the European front, the prospects of an orderly Brexit
seemed dim as a British source said that German Chancellor
Angela Merkel told Prime Minister Boris Johnson by phone that a
deal was "overwhelmingly unlikely." In Washington, Chinese Vice Premier Liu He and U.S. Trade
Representative Robert Lighthizer are set to resume top-level
trade talks on Thursday, ahead of a scheduled increase in U.S.
tariffs on $250 billion worth of Chinese goods on Oct. 15.

"It's (gold) got a little bit of downside exposure because
there are a lot of people reassessing what happened as they had
been too bearish on the economic outlook and current conditions,
and they're backing away from that," said Jeffrey Christian,
managing partner of CPM Group.
While gold could see a little bit of a downside in the
near-term, it is probably going to head higher because of the
global geopolitical uncertainties, Christian added.
However, limiting gold's advance, the dollar .DXY climbed
to a near one-week high on Tuesday, making bullion more
expensive for holders of other currencies. USD/
Investors are also awaiting the U.S. Federal Open Market
Committee's minutes from its September meeting on Wednesday for
clues on whether the central bank will cut rates at its October
session.
Lower interest rates tend to increase investor interest in
non-yielding gold.
Among other precious metals, silver XAG= gained 1.2% to
$17.64 an ounce, after touching its highest since Sept. 27 at
$17.80.
"Silver is getting some benefit from the safe-haven buying
and is tracking gold higher," RJO Futures' Streible said.
Platinum XPT= rose 1.1% to $886.50, while palladium XPD=
climbed 0.8% to $1,673.25.