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PRECIOUS-Gold rises on weak dollar; investors seek more clarity on U.S.-China trade talks

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* Improved risk appetite limits gold's gains

* SPDR Gold holdings down 3 pct so far in Feb

Feb 13 (Reuters) - Gold firmed slightly on Wednesday asinvestors held onto the safe-haven metal while seeking moreclarity on Sino-U.S. trade talks, and as volatility in thedollar provided further support.

Spot gold XAU= was up 0.2 percent at $1,312.82 per ounceas of 0419 GMT, while U.S. gold futures GCv1 gained 0.2percent to $1,316.2 an ounce.

U.S. President Donald Trump said on Tuesday that he couldsee letting the March 1 deadline for reaching a trade agreementwith Beijing slide a little if the two sides were close tohammering out a deal to end their long-drawn trade tussle.

U.S. tariffs on $200 billion worth of imports from China arescheduled to rise to 25 percent from 10 percent if the two sidescannot reach a deal by the deadline, increasing pain and costsin sectors from consumer electronics to agriculture.

"There is very little detail behind some of those (Trump's)comments... There has been nothing really strong enough to driveany strong conviction (for investors)," said ANZ analyst DanielHynes.

However, improved risk appetite limited bullion's gains,with Asian stocks edging higher to a more than four-month peak. MKTS/GLOB

"The safe-haven buying that we saw earlier in the month isnow a little more fragile (after recent developments in tradetalks)," Hynes said.

The dollar index .DXY , however, suffered against its Asianpeers, and was marginally lower at 96.68. It shed about 0.4percent in the previous session in its worst one-day loss in twoweeks.

"Any progress in the talks would likely weaken the dollarand elevate gold slightly from here," said INTL FCStone analystEdward Meir.

Investors were also worried after Trump said on Tuesday hewas unhappy with a deal struck by congressional negotiators onborder security that denied him funds for his U.S.-Mexicanborder wall.

Nevertheless, Trump said he did not expect another shutdown,while continuing to insist he could find a way to bypassCongress and build a wall without lawmakers.

Meanwhile, holdings of SPDR Gold TrustGLD , the world'slargest gold-backed exchange-traded fund, fell 0.4 percent onTuesday. Holdings are down about 3 percent so far this monthafter four straight monthly gains.

ANZ's Hynes said January saw pretty good flows. "Some ofthose investors take profits and subsequently extract some ofthose holdings. I don't see it becoming a longer trade trend,"he said.

Spot Palladium XPD= rose 0.5 percent to $1,410.50 perounce, after gaining 1.3 percent in the previous session - itsbest since Jan. 25.

Platinum XPT= was unchanged at $786.50 an ounce, whilesilver XAG= fell 0.1 percent to $15.69. (Additonal reporting by Nallur Sethuraman in Bengaluru; Editingby Subhranshu Sahu) ((karthikasuresh.namboothiri@thomsonreuters.com; +91 80 67490997 (If within U.S. call 651-848-5832); Reuters Messaging:karthikasuresh.namboothiri.thomsonreuters.com@reuters.net))


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