PRECIOUS-Gold unchanged as U.S.-China trade uncertainty persists

(Adds details on U.S. economic data, updates prices)
* Palladium marks fresh high of $1,874.50
* Markets await U.S. non-farm payrolls report on Friday
* U.S. weekly jobless claims drop to seven-month low
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By Karthika Suresh Namboothiri
Dec 5 (Reuters) - Gold was little changed on Thursday,
hovering below a one-month peak as investors sought further
clarity on the U.S.-China trade war in a week of mixed messages.
Spot gold XAU= was flat at $1,474.60 per ounce by 1340
GMT, having hit its highest since Nov. 7 at $1,484 the previous
day. U.S. gold futures GCcv1 were also unmoved at $1,479.70.
"We have seen gold very volatile in the last couple of days
with all the headlines around the trade war," said Carlo Alberto
De Casa, chief analyst at ActivTrades. "Investors are generally
cautious at times like today when there is no news."
A Bloomberg report on Wednesday fanned hopes that the two
sides were close to a so-called phase one deal, prompting a
rally in global equities while gold retreated from a one-month
high.
With a Dec. 15 deadline for imposition of further U.S.
tariffs on Beijing looming large, U.S. President Donald Trump
had on Tuesday said that an agreement might have to wait until
after the U.S. presidential election in 2020. "At the moment investors are still hoping for higher
(gold)prices but upside is limited," ABN Amro analyst Georgette
Boele said in an email
"The pressure on $1,450 will only increase and, at some
point, the level will be broken ... Towards the end of the year,
liquidity will dry up and trading will become more technical."
The number of Americans filing applications for unemployment
benefits unexpectedly fell last week hitting their lowest level
in seven months, suggesting the labour market remains solid even
as the economy is slowing. Traders are also waiting for the U.S. non-farm payrolls
report due Friday to determine how well the U.S. economy is
holding up amid a global slowdown.
The dollar index .DXY extended losses and was down 0.1%,
making gold cheaper for investors holding other currencies.
USD/
However, palladium XPD= continued its rally, notching a
record high of $1,874.50 an ounce on supply concerns over the
auto catalyst metal. It was last down 0.3% at $1,864.47.
"Constrained mine supply and growing demand should send
palladium into its ninth straight year of market deficit in
2020," UBS commodity analyst Giovanni Staunovo said in a note.
Among other metals, platinum XPT= eased 0.3% to $891.77
while silver XAG= edged up 0.3% to $16.87.