PRECIOUS-Gold steady as markets eye Fed meet, U.S.-China trade talks in focus

* SPDR Gold holdings dipped 0.14% on Friday
* Gold looks neutral in a range of $1,412-$1,427/oz -
technicals
* U.S. Fed to review monetary policy at meet on July 30-31

(Updates prices)
By Harshith Aranya
July 29 (Reuters) - Gold prices were stable on Monday, ahead
of a U.S. Federal Reserve meeting later in the week where
markets will watch for indications of monetary easing in the
world's largest economy.
Spot gold XAU= were little changed at $1,418.90 per ounce,
as of 0745 GMT. Prices had dropped about half a percent in the
previous week, pressured by dollar strength and robust U.S.
economic data.
U.S. gold futures GCv1 were flat at $1,418.60 an ounce.
"This week we have the FOMC (Federal Open Market Committee)
meeting, where we are likely to see a dovish outlook- this will
lead to weakness in the dollar and will eventually trigger some
upside in gold prices," said Kunal Shah, head of research at
Nirmal Bang Commodities in Mumbai, India.
The Fed is expected to trim the key interest rate by at
least 25 basis points (bps) at its July 30-31 meeting. Investors
will also look for signals of likely additional cuts in the
pipeline.
Interest rate futures are fully priced for a quarter-point
rate cut from the Fed on Wednesday, with only a small chance of
a half-point move. FEDWATCH
Meanwhile, U.S. and Chinese trade talks are shifting to
Shanghai this week, as negotiators from both countries meet for
their first in-person talks since a truce at G20 last month.
Expectations are low for a breakthrough. "If talks continue to drag on, it will have a negative
impact on the global economy. You should expect to see some more
easing by central banks around the world, not only by the United
States," said Helen Lau, analyst, Argonaut Securities, adding
that this could provide support to gold.
On the technical front, gold looks neutral in a range of
$1,412-$1,427 per ounce, and an escape could suggest a
direction, according to Reuters technical analyst Wang Tao.
SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.14% to 818.14
tonnes on Friday. GOL/ETF
Hedge funds and money managers reduced their bullish stance
in COMEX gold in the week to July 23, the U.S. Commodity Futures
Trading Commission (CFTC) said in a report on Friday.
Among other precious metals, silver XAG= and palladium
XPD= inched 0.1% higher to $16.41 per ounce and $1,536.39 per
ounce, respectively. Platinum XPT= was up 0.9% at $868.11 per
ounce.