* Spot gold may retest support at $1,299/oz - technicals
* U.S. border deal talks collapse, raises govt shutdown fears
* SPDR Gold holdings fell for five straight sessions last week
(Updates prices)
By Sethuraman N R
Feb 11 (Reuters) - Gold prices eased on Monday as uncertainties
around U.S-China trade tensions made the dollar buoyant, taking sheen
off the metal's safe-haven appeal even as investors were worried about
a slowdown in global economic growth.
Spot gold fell 0.2 percent to $1,311.22 per ounce by 0733 GMT,
while U.S. gold futures declined 0.3 percent to $1,314.90 per ounce.
A vigorous dollar is acting as an impediment to gold in the near
term, said Benjamin Lu, an analyst with Singapore-based Phillip
Futures, adding gold also faced a short-term negative bias 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-China trade
negotiations and reduction in the euro-zone growth forecasts have laid
a strong foundation for gold."
Investors are looking ahead to trade talks between Beijing and
Washington this week with a delegation of U.S. officials travelling to
China for the next round of negotiations. U.S. President Donald Trump
said last week that he had no plans to meet with Chinese President Xi
Jinping before a March 1 deadline to achieve a trade deal.
Trump has vowed to increase U.S. tariffs on $200 billion worth of
Chinese imports if the two sides cannot reach a deal by 12:01 a.m.
(0501 GMT) on March 2.
Trade tensions between the world's top two economies have rattled
financial markets since last year and also boosted the appeal of the
U.S. dollar as a safe-haven.
The dollar index touched its highest since Jan. 3, making the
greenback-denominated gold more expensive for holders of other
currencies.
The dollar's strength comes despite the Federal Reserve pausing
its multi-year rate hike cycle and dovish stance exhibited by several
Fed officials.
Gold touched a nine-month high at $1,326.30 in late January on a
dovish Fed, but prices have since seen a correction.
While gold is supported by the Fed's policy, prices will likely
remain range-bound until there is clarity on the trade front and U.S.
government shutdown, OANDA analyst Edward Moya said in a note.
Talks on border security funding collapsed after Democratic and
Republican lawmakers clashed over immigrant detention policy as they
worked to avert another U.S. government shutdown.
Spot gold may retest a support at $1,299 per ounce, as suggested
by its wave pattern and a projection analysis, according to Reuters
technical analyst Wang Tao.
SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, saw outflows for five straight sessions last
week.
Meanwhile, palladium fell 1.4 percent to $1,382.41 an ounce.
Spot silver dropped 0.5 percent to $15.75, while platinum
was down 1.3 percent at $787.49
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Subhranshu 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))