PRECIOUS-Gold hits more than one-week high on Gulf tensions

* COMEX gold speculators raise net long positions
* Holdings at SPDR Gold Trust rise 1.2% on Friday
* Palladium hits record high of $1,664.34/oz

(Updates prices)
By Diptendu Lahiri
Sept 23 (Reuters) - Gold rose to its highest in more than a
week on Monday, supported by Middle East tensions and
uncertainty over U.S.-China trade talks, while palladium hit an
all-time high.
Spot gold XAU= rose 0.2% to $1,519.56 per ounce at 0818
GMT per ounce, touching a high since Sept. 12.
U.S. gold futures GCcv1 rose 0.8 % to $1,527.20.
"No significant news is coming out of the trade war ...
until and unless we have some clarity on the negotiations, gold
will be supported," said Hareesh V, head of commodity research
at Geojit Financial Services.
A U.S.-China trade breakthrough seemed unlikely after
President Donald Trump told reporters on Friday he was "not
looking" for a partial deal and Chinese officials cancelled
goodwill visits to U.S. farmers. But both sides later published positive statements. The U.S.
Trade Representative's office described last week's talks as
"productive" and China's Commerce Ministry called them
"constructive." October's high-level talks remain on track.
"On a immediate basis gold is trading between the range
of$1,465-$1,550. If the trade talks fail gold may rally to
$1,660 or even higher," Hareesh said.
The bullion has risen about 18% so far this year.
Tensions remained elevated in the Middle East after
Washington ordered more troops to the Gulf region to strengthen
Saudi Arabia's air and missile defences, following an attack on
the kingdom's oil facilities. The United States has imposed more
sanctions on Iran, penalising Iran's central bank.
Saudi Arabia will appeal to a global gathering in New York
this week for concerted action to punish and deter Iran after
the strikes. The dollar was nearly flat against a basket of currencies
.DXY , while most Asian share markets slipped on Monday.
USD/ MKTS/GLOB
Holdings at SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 1.2% to 894.15 tonnes on
Friday. COMEX gold speculators raised net long position by 14,150
contracts to 261,878 in the week to Sept. 17, according to the
U.S. Commodity Futures Trading Commission data. Spot palladium XPD= rose 0.8% to $1,655 per ounce, after
hitting a record high at $1,664.34 earlier in the session.
"Healthy demand, constrained supply and challenging
liquidity conditions are likely driving prices higher," UBS
strategist Joni Teves wrote in a note.
"A breakdown of U.S.-China trade talks, deterioration in
economic data and a pullback in equities from the highs presents
downside risks for palladium over the remainder of the year."
Silver XAG= nearly 2% to $18.33 per ounce and platinum
XPT= rose 0.8% to $953.05 per ounce.