PRECIOUS-Gold slips as trade deal hopes fuel risk appetite

* U.S. ISM non-manufacturing report due later in the day
* Global shares climb back towards record highs
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

(Updates prices)
By Asha Sistla
Nov 5 (Reuters) - Gold fell on Tuesday as optimism over
U.S.-China trade ties and fading fears of a recession buoyed
European stocks, deflecting investors' interest from the
safe-haven metal.
Spot gold XAU= fell 0.5% to $1,502.21 per ounce at 1211
GMT, while U.S. gold futures GCcv1 was down 0.5% to $1,504.
"Gold investors are leaving safe-havens and sailing into
more risky waters," Quantitative Commodity Research analyst
Peter Fertig said.
Not just the signing of a deal, but a clear signal of an
improvement in the economic situation may cause gold to fall and
break out of its current range, he added.
World shares climbed back towards record highs as hopes that
Washington may roll back some of the tariffs it has imposed on
Chinese imports kindled optimism on the global economic outlook.
MKTS/GLOB
China hopes for the removal of more tariffs imposed by the
United States in September as part of a "phase one" U.S.-China
trade deal, which may be signed this month by U.S. President
Donald Trump and Chinese President Xi Jinping. "If the economy recovers as the U.S. Federal Reserve expects,
there might be no further rate cuts next year and that is
another factor weighing currently on gold," QCR's Fertig said.
Last week, the U.S. Federal Reserve cut interest rates for a
third time this year, but signalled there would be no further
reductions unless the economy takes a turn for the worse.
After data last week showed U.S. job growth had slowed less
than expected in October, investors now await a U.S. ISM
non-manufacturing report due on Tuesday that is forecast to show
activity accelerated slightly in October. On the technical front, "the main trend remains positive,
even if markets seem to be waiting for fresh catalysts. In the
short term, there is now clear directionality, with prices
moving between $1,480 and $1,520," Carlo Alberto De Casa,
ActivTrades' chief analyst, said in a note.
Among other metals, silver XAG= edged 0.1% lower to $18.03
per ounce and platinum XPT= fell 0.1% to $934.38 per ounce.
Palladium XPD= rose 0.2% to $1,781.72 an ounce, after
sliding 1.5% in the previous session. The metal hit an all-time
high of $1,824.50 on Oct. 30, driven by a sustained supply
crunch for the autocatalyst metal.
"With palladium expected to stay in deficit and new
mine-supply additions lacking next year, prices are likely to
remain propped up to incentivize more scrap supply and curb
demand growth," UBS commodity analyst Giovanni Staunovo said in
a note.