(Updates prices)
* Stock markets rise, trade below record high
* Palladium rises 1.2%, holds above $1,950/oz
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl
By Eileen Soreng
Dec 16 (Reuters) - Gold prices steadied on Monday as a
weaker dollar and a lack of details on the "phase one"
U.S.-China trade deal offset pressure from gains in the stock
markets.
Spot gold XAU= inched 0.1% higher to $1,477.31 per ounce
by 1254 GMT. U.S. gold futures GCcv1 were also up 0.1% at
$1,481.90.
"Based on gold's reaction, it appears the market is not very
convinced about the deal... in the sense that this is not really
a breakthrough in terms of lifting growth globally, in the U.S.
or China," said Julius Baer analyst Carsten Menke.
"Gold market investors are still a bit sceptical about the
growth outlook next year so they prefer to hold onto their
positions."
The deal, announced on Friday, will reduce some U.S. tariffs
on Chinese goods in exchange for increased Chinese purchases of
U.S. agricultural, manufactured and energy products by some $200
billion over the next two years.
The news pushed up world stock markets, which were trading a
notch below a record high hit last week. MKTA/GLOB
U.S. Trade Representative Robert Lighthizer on Sunday said
U.S. exports to China will nearly double over the next two
years, although officials are yet to decide a date to sign the
agreement. "There still remain concerns about what this deal entails
and how much this phase one trade deal will alleviate the
downward pressure on the global economy going into 2020," said
FXTM market analyst Han Tan.
Gold has risen 15% this year on the backdrop of the
months-long tariff war and its impact on the global economy.
Data on Monday showed euro zone business growth remained
weak in December. "My outlook (for gold) is for strong support at $1,474 then
$1,411 with a rally to $1,500-$1,511, and $1,544 in extension,"
said Nicholas Frappell, global general manager at ABC Bullion.
Also, the dollar .DXY eased against a basket of rivals,
making gold cheaper for holders of other currencies. USD/
Speculators slashed their bullish positions in COMEX gold
contracts in the week to Dec. 10. CFTC/
Elsewhere, palladium XPD= climbed 1.2% to $1,954.21 an
ounce. The autocatalyst metal hit a record high of $1,979.95 on
Friday driven by supply concerns.
Silver XAG= gained 0.5% to $17.02 per ounce, while
platinum XPT= was up 0.3% at $930.36.