PRECIOUS-Gold slips as China-U.S. trade talk hopes whet risk appetite

* Gold slips after three straight sessions of gains
* Platinum hits 1-1/2 year peak of $990.37/oz
* China, U.S. to hold high-level trade talks in Oct

(Updates prices)
By Karthika Suresh Namboothiri
Sept 5 (Reuters) - Gold prices dropped on Thursday as
risk-on sentiment got a boost after China and the United States
agreed to hold talks to end their protracted trade dispute.
Spot gold XAU= fell 0.6% to $1,543.78 per ounce as of 0745
GMT, set to snap a three-day gaining streak. Prices touched
$1,557 on Wednesday, their highest since April 2013.
U.S. gold futures GCcv1 dropped 0.5% to $1,552.60 per
ounce.
China's Commerce Ministry said its trade team will hold
talks with U.S. counterparts in mid-September in preparation for
high-level negotiations in early October. Gold has jumped about 23% this year as the bruising trade
war between the world's two largest economies has sparked fears
of a global economic slowdown and encouraged monetary easing by
major central banks around the world.
The news is "driving everything at the moment", said OANDA
analyst Jeffrey Halley.
"Gold will remain under pressure, because trade tensions
have been the elephant in the room. Any sign there is a thawing
in that situation is going to see a rotation out of gold and
into growth-orientated assets."
Also encouraging risk sentiment was the withdrawal of an
extradition bill that had triggered months of often violent
protests in Hong Kong and an easing of Brexit-related
uncertainties.
Bullion is seen as a safe-haven during times of political
and economic uncertainty.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS jumped 1.1%. U.S. Treasury yields extended gains
in Asia and the yield curve steepened, signs that investors were
willing to take on riskier assets. MKTS/GLOB US/
Gold may retrace to $1,524 per ounce, as it failed to break
a resistance at $1,546, according to Reuters technical analyst
Wang Tao. Focus now shifts to the U.S. central bank's meeting later
this month, amid expectations of a 25 basis point interest rate
cut according to CME's FedWatch tool. FEDWATCH
"U.S. services ISM and PMI numbers, the ADP employment
report as well as factory and durable goods orders figures are
now in focus... firm results might cool Fed rate cut bets and
undermine gold's appeal," said Ilya Spivak, senior currency
strategist with DailyFx, referring to crucial U.S. economic data
expected later in the session, often seen as an indicator of
economic health.
Gold is highly sensitive to rising interest rates, which
lift the opportunity cost of holding non-yielding bullion.
Among other precious metals, silver XAG= eased about 1% to
$19.40 per ounce, but was near a three-year high of $19.64 it
touched in the previous session.
Platinum XPT= dipped 0.3% to $982.69, having touched
$997.16 earlier in the session, its highest since Feb. 2018.
Meanwhile, palladium XPD= was up 0.3% to $1,556.68 per ounce.