October 22, 2019 / 1:03 AM / 7 months ago

PRECIOUS-Gold eases as trade-deal hopes lift risk mood

Oct 22 (Reuters) - Gold prices eased on Tuesday as reports that trade talks between Washington and Beijing were making progress cheered markets, but a dearth of concrete signs kept investors on the edge.


* Spot gold was down 0.1% at $1,482.41 per ounce, as of 0038 GMT. U.S. gold futures dropped 0.2% to $1,485.80.

* U.S. President Donald Trump said on Monday that U.S.-China trade talks were making progress, adding to a comment he made on Friday that a trade deal will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on Nov. 16-17.

* White House adviser Larry Kudlow also said tariffs scheduled for December could be withdrawn if progress is made.

* This cheered markets and pushed the benchmark S&P 500 stock index to within striking distance of a record high on Monday. MSCI's broadest index of Asia-Pacific shares outside Japan added a slight 0.1% in early trade on Tuesday.

* The risk-on sentiment in the market dented demand for the bullion, often seen as an alternative investment during times of political and financial uncertainty.

* Meanwhile, in the middle of delicate talks, China is seeking $2.4 billion in retaliatory sanctions against the United States for failing to comply with a World Trade Organization ruling in a case that highlights White House complaints about the global trade body.

* The two major economies have imposed a series of tit-for-tat tariffs over the past 15 months that have roiled financial markets and fanned global recessionary fears.

* Investors now await a U.S. Federal Reserve meeting at the end of the month that could offer further signs of monetary easing.

* Across the Atlantic, Britain's Prime Minister Boris Johnson appealed to lawmakers on Monday to approve his Brexit bill this week, saying neither he, the European Union or the public wanted any more delays to Britain's departure from the bloc.

DATA/EVENTS (GMT) 1000 UK CBI Trends - Orders Oct 1200 Brazil IPCA-15 Mid-Month CPI Oct 1400 US Existing Home Sales Sept

Reporting by Karthika Suresh Namboothiri in Bengaluru, Editing by Sherry Jacob-Phillips

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