PRECIOUS-Gold holds steady as trade talk hopes offset slowdown fears

* SPDR Gold Trust holdings at highest since November 2016
* Silver hits a peak since Sept. 6 at $18.74/oz

(Adds, quote, detail, updates prices)
By Eileen Soreng
Sept 24 (Reuters) - Gold prices were steady on Tuesday, near
a two-week peak touched in the previous session on global
slowdown fears and tensions in the Middle East, while an
improved Sino-U.S. trade tone weighed on prices.
Spot gold XAU= was little changed at $1,521.62 per ounce
at 0734 GMT, after climbing to its highest since Sept. 6 at
$1,526.80 in the previous session.
U.S. gold futures GCcv1 were down 0.3% to $1,527.10 per
ounce
"Both the countries (China and the United States) have given
some indication again that an agreement might be reached and
that is affecting gold a bit in a negative way but mostly it is
trading in sidelines," said Michael McCarthy, chief market
strategist at CMC Markets. "If the talks fall apart again, it
will support gold."
U.S. Treasury Secretary Steven Mnuchin told the Fox Business
Network that discussions with China were scheduled in two weeks,
propping up the dollar and global shares. USD/
MKTS/GLOB
The tariff dispute between the world's two largest economies
has dragged on for well over a year, rattling investors and
denting global growth, and driving the safe-haven metal up about
18% so far this year.
Concerns mounted over a slowing global economy after a
survey out of the Euro zone on Monday showed business growth
stalled this month, dragged down by shrinking activity in
powerhouse Germany, where a manufacturing recession deepened
unexpectedly. "Geopolitical uncertainties and recessionary fears from euro
zone with Brexit deadline approaching, overall sentiments will
be positive for gold and silver," said Jigar Trivedi, a
commodities analyst at Mumbai-based Anand Rathi Shares & Stock
Brokers.
Meanwhile, tensions in the Middle East have escalated since
an attack on Saudi Arabia's oil facilities earlier this month,
with Britain, Germany and France backing the United States and
blaming Iran for the attacks. Investors also kept an eye out for a UK Supreme Court ruling
related to the suspension of Britain's parliament this month
which may further complicate Prime Minister Boris Johnson's
plans to lead his country out of the European Union next month.
Indicative of sentiment, holdings in SPDR Gold Trust GLD ,
the world's largest gold-backed exchange-traded fund, rose 1.61%
to 908.52 tonnes on Monday, the highest since November 2016.
Elsewhere, spot palladium XPD= was down 0.1% at $1,651.79
per ounce, after it climbed to a record $1,664.50 on Monday.
Silver XAG= was 0.5% lower at $18.53 per ounce, having hit
a high since Sept. 6 at $18.74. Platinum XPT= fell 0.4% to
$952.80.