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PRECIOUS-Gold slips as trade tensions buoy dollar; U.S-China talks in focus

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* Spot gold may retest support at $1,299/oz - technicals

* U.S. border deal talks collapse, raises govt shutdownfears

* SPDR Gold holdings fell for five straight sessions lastweek (Adds comment, updates prices)

Feb 11 (Reuters) - Gold prices eased on Monday asuncertainties around U.S-China trade tensions made the dollarbuoyant, taking sheen off the metal's safe-haven appeal even asinvestors were worried about a slowdown in global economicgrowth.

Spot gold XAU= fell 0.2 percent to $1,311.77 per ounce by0539 GMT, while U.S. gold futures GCv1 declined 0.2 percent to$1,315.50 per ounce.

A vigorous dollar is acting as an impediment to gold in thenear term, said Benjamin Lu, an analyst with Singapore-basedPhillip Futures, adding gold also faced a short-term negativebias in charts used by technical traders.

"But over a long-term perspective, we are quite bullish.Global growth worries, absence of positive signs in U.S-Chinatrade negotiations and reduction in the euro-zone growthforecasts have laid a strong foundation for gold."

Investors are looking ahead to trade talks between Beijingand Washington this week with a delegation of U.S. officialstravelling to China for the next round of negotiations. U.S.President Donald Trump said last week that he had no plans tomeet with Chinese President Xi Jinping before a March 1 deadlineto achieve a trade deal.

Trump has vowed to increase U.S. tariffs on $200 billionworth of Chinese imports if the two sides cannot reach a deal by12:01 a.m. (0501 GMT) on March 2.

Trade tensions between the world's top two economies haverattled financial markets since last year and also boosted theappeal of the U.S. dollar as a safe-haven.

The dollar index .DXY touched its highest since Jan. 3,making the greenback-denominated gold more expensive for holdersof other currencies. USD/

The dollar's strength comes despite the Federal Reservepausing its multi-year rate hike cycle and dovish stanceexhibited by several Fed officials.

Gold touched a nine-month high at $1,326.30 in late Januaryon a dovish Fed, but prices have since seen a correction.

While gold is supported by the Fed's policy, prices willlikely remain range-bound until there is clarity on the tradefront and U.S. government shutdown, OANDA analyst Edward Moyasaid in a note.

Talks on border security funding collapsed after Democraticand Republican lawmakers clashed over immigrant detention policyas they worked to avert another U.S. government shutdown.

Spot gold may retest a support at $1,299 per ounce, assuggested by its wave pattern and a projection analysis,according to Reuters technical analyst Wang Tao.

SPDR Gold TrustGLD , the world's largest gold-backedexchange-traded fund, saw outflows for five straight sessionslast week. GOL/ETF

Meanwhile, palladium XPD= fell 1.2 percent to $1,385 anounce.

Spot silver XAG= dropped 0.4 percent to $15.76, whileplatinum XPT= was down 1.2 percent at $788.50. (Reporting by Nallur Sethuraman in Bengaluru; Editing bySubhranshu Sahu) ((Sethuraman.NR@thomsonreuters.com; (Within U.S.1-651-848-5832, Outside U.S. +91 8067496031); Reuters Messaging:nallur.sethuraman.thomsonreuters.com@reuters.net))


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