PRECIOUS-Gold firms as doubts over U.S.-China trade deal curb risk appetite

(Updates prices)
* U.S. Fed Chair Jerome Powell to testify on economic
outlook
* Holdings in SPDR Gold Trust dip to lowest since Sept. 20

By Sumita Layek
Nov 13 (Reuters) - Gold prices rose on Wednesday after a
speech by U.S. President Donald Trump dashed hopes for a
positive sign on a U.S.-China trade deal, prompting investors to
seek safety in the metal.
Spot gold XAU= rose 0.3% at $1,460.89 per ounce at 0750
GMT, while U.S. gold futures GCv1 advanced 0.6% at $1,462.70
per ounce.
Asian stocks and Wall Street futures fell as growing worries
that trade talks are stalling and concern about intensifying
unrest in Hong Kong hurt demand for risky assets. MKTS/GLOB
U.S. and Chinese negotiators were "close" to a "phase one"
trade deal, Trump said in Tuesday's speech to the Economic Club
of New York, but offered no new details on negotiations.
"The downtrend (in gold) has paused. President Trump, on one
hand, said the deal was close and, on the other hand, said he
will raise the tariffs if a deal is not reached," said Michael
McCarthy, chief market strategist at CMC Markets.
"This didn't help the trade situation but supported gold."
Gold, considered a safe store of value during economic and
political uncertainty, has risen about 14% this year on concerns
over the trade war and monetary policy easing by central banks.
"As long as things (trade deal) are not stamped and sealed,
uncertainty is going to prevail in the market and gold will
receive support," said Ajay Kedia, director at Kedia Advisory in
Mumbai.
Later on Wednesday, Fed Chairman Jerome Powell is set to
testify on the economic outlook before the congressional Joint
Economic Committee.
Political unrest in the Asian financial hub of Hong Kong
provided support for the precious metal, as police battled
pro-democracy protesters at several university campuses in the
Chinese-ruled city. "Slowing economic growth, geopolitical risk and an easing
interest rate cycle remain the reality," ANZ Bank said in a
note. "And such a backdrop should support gold investment demand
through 2020."
Meanwhile, holdings of the world's largest gold-backed
exchange-traded fund SPDR Gold Trust GLD fell to their lowest
since Sept. 20 on Tuesday.
Palladium XPD= was up 0.8% at $1,712.93 per ounce. The
autocatalyst metal climbed to a record $1,824.50 last month and
was trading at a premium of about $250 to gold on Wednesday.
"Palladium should hold its premium over other metals, amid a
sustained deficit backdrop," ANZ said. "Stricter emission
regulations are driving palladium demand, despite the struggling
auto sector."
Silver XAG= rose 0.9% to $16.92 per ounce, and platinum
XPT= gained 0.6% to $873.86.