PRECIOUS-Gold slips on stronger dollar, US-China trade deal optimism

Oct 27 (Reuters) - Gold prices fell on Monday, as a stronger dollar and signs of easing U.S.-China trade tensions weighed on the safe-haven metal, while investors awaited major central bank meetings later this week.

FUNDAMENTALS

Spot gold XAU= lost 0.5% to $4,092.76 per ounce as of 0120 GMT.

U.S. gold futures GCcv1 for December delivery lost 0.7% to $4,106.80 per ounce.

The U.S. dollar rose to a more than two-week high against the yen on the day, making gold more expensive for other currency holders. USD/

On Sunday, top Chinese and U.S. economic officials hashed out the framework of a trade deal for U.S. President Donald Trump and Chinese President Xi Jinping to decide on later this week that would pause steeper American tariffs and Chinese rare earths export controls, U.S. officials said.

Meanwhile, the Federal Reserve is widely expected to cut interest rate by a quarter percentage point at its meeting on Wednesday.

Investors will be awaiting any forward-looking language from Fed Chair Jerome Powell, with the U.S. central bank widely expected to further cut rates at its December meeting.

Gold, a non-yielding asset, tends to benefit in a low-interest-rate environment.

Meanwhile, U.S. consumer prices rose 3% in the 12 months through September, data showed on Friday, slightly below economists' expectations of a 3.1% increase.

In India, physical gold demand ticked lower last week as buyers held back purchases, anticipating a deeper price correction, while a pullback in rates sparked buying interest in China and Singapore.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.52% to 1,046.93 tonnes on Friday from 1,052.37 tonnes on Thursday.

Elsewhere, spot silver XAG= fell 0.3% to $48.44 per ounce, platinum XPT= rose 0.5% to $1,612.95 and palladium XPD= gained 0.2% to $1,431.94.

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