PRECIOUS-Gold remains below one-month peak as shares soar on trade relief

(Adds comments, details; updates prices)
* U.S. dollar holds near 5-month low
* Palladium hits record high of $1,979.95/oz
* Platinum eyes best week since end-August
* Bullion denominated in the British pound slides 1.4%

By Diptendu Lahiri
Dec 13 (Reuters) - Gold eased below last session's one-month
high on Friday after reports the United States and China were
close to signing a trade deal and Brexit optimism after
Britain's election result fuelled a rally in stock markets.
Spot gold XAU= fell 0.1 % to $1,468.20 per ounce by 1400
GMT, but has risen about 0.6% so far this week. U.S. gold
futures GCcv1 were flat at $1,472.80.
"Boris Johnson's win in the UK elections has wiped away the
uncertainty around Brexit and news of a U.S.-China deal going
through has tamed trade war tensions," said Quantitative
Commodity Research analyst Peter Fertig.
Trade optimism lifted Wall Street to record highs, while
European stock markets were within striking distance of an
all-time high on Friday after British Prime Minister Boris
Johnson won a resounding election victory. MKTS/GLOB
Bullion denominated in British sterling XAUGBP=R slid
1.4%, having earlier fallen to 1,085.01 pounds an ounce, its
lowest since June.
The United States has offered to cut existing tariffs on
Chinese goods by as much as 50% and suspend new tariffs
scheduled to go into effect on Sunday, sources told Reuters on
Thursday. "Until and unless the deal is signed in pen and paper, and
announced at the White House press conference, uncertainty will
persist and that will keep supporting gold," Fertig added.
Gold rose to its highest since Nov. 7 on Thursday, but
settled lower after trade deal reports.
The dollar .DXY was hovering close to its lowest since
early July, putting a floor under gold prices. USD/
"Notwithstanding a risk-on move with equities printing
all-time highs and yields aggressively rising, the yellow metal
remains resilient despite the less-optimistic tone for gold," TD
Securities said in a note.
Gold was little changed after data showed U.S. retail sales
increased less than expected in November. Elsewhere, palladium XPD= rose 2% to $1,974.55 an ounce,
having notched up an all-time high of $1,979.95.
"The auto sector is gradually gaining steam and with
palladium being used as an autocatalyst in cars, demand is going
up, while the supply still remains a constraint," Fertig added.
Plagued by a supply deficit, the metal has gained about 5%
so far this week, predominantly supported by mine closures
across major producer South Africa.
Platinum XPT= fell 0.9%, to $935.60 per ounce, but was on
track to post its best week since the end of August.
Silver XAG= inched down 0.1% at $16.91 and was set to
record its best weekly gain since the end of October.