PRECIOUS-Gold rises as stocks pull back on waning trade deal optimism

(Updates prices)
* Palladium hits record high of $1,706.42/oz
* Brexit hangs in the balance as EU doubts a deal this week

By Sumita Layek
Oct 14 (Reuters) - Gold firmed on Monday as a lack of
clarity on U.S.-China trade ties pushed investors back to safe
havens and drove a retreat in stock markets, while palladium
continued its record run to notch up a fresh all-time high.
Spot gold XAU= was up 0.3% at $1,493.91 per ounce as of
1158 GMT, having shed 1% last week. U.S. gold futures GCcv1
gained 0.7% to $1,498.40 per ounce.
U.S. President Donald Trump on Friday outlined the first
phase of a deal to end the protracted Sino-U.S. trade war and
suspended a threatened tariff hike, the biggest step by the two
countries in 15 months. "We shouldn't get overexcited with what's happening now
especially in terms of the trade dispute, because nothing has
dramatically changed and I'd be a little cautious now to
conclude that things are heading in the right direction," said
Hussein Sayed, chief market strategist at FXTM,
"We had some kind of trade truce, not a trade deal with the
U.S. and China ... also, we don't see solid comments that we're
going to arrive into a Brexit deal as of now. (These factors)
should keep some sort of floor on gold prices."
A global index of stock markets slipped as signs of progress
in the trade dispute drew mixed a reaction from investors, with
some cautioning over a lack of detail in the initial stages of
the agreement. MKTS/GLOB
Limiting gold's upside, the dollar index .DXY recovered
from a three-week low hit in the previous session. USD/
"From a technical point of view, prices are still in a
lateral mode, with a first resistance placed at $1,500, followed
by another key level at $1,515. Vice versa, a fall below $1,470
would denote further weakness," ActivTrades chief analyst Carlo
Alberto De Casa said in a note.
Investors are now looking forward to a summit between the
European Union and Britain in Brussels on Thursday and Friday.
However, a deal to smooth Britain's departure from the EU
hung in the balance after diplomats indicated the bloc wanted
more concessions from British Prime Minister Boris Johnson and
said a full agreement was unlikely this week. "Investors are clearly awaiting a fresh catalyst which could
come from the trade war or from central banks or to a lesser
extent from Brexit," De Casa said.
Elsewhere, palladium XPD= was down 0.2% to $1,695.97 an
ounce, having earlier hit a fresh record high of $1,706.42. The
metal used in vehicle exhausts to reduce harmful emissions has
been grappling with a sustained supply shortfall, helping it
rally over $300 since early August when it touched a near
two-month low. Silver XAG= was up 0.3% to $17.59 per ounce and platinum
XPT= rose 0.7% to $895.82.