By Eileen Soreng
(Reuters) - Gold prices were little changed on Tuesday, buoyed by a slight retreat in the U.S. dollar amid optimism for a resolution to the U.S.-China trade conflict.
Spot gold was up 0.1 percent at $1,309.53 an ounce at 10:55 a.m. EST (1555 GMT), having declined 0.4 percent in the previous session.
U.S. gold futures rose 0.1 percent to $1,312.90.
"If there is an announcement that the government is going to be open and if there's a breakthrough in trade talks, gold will initially sell-off, but traders want to own gold right now with the U.S. Federal Reserve being dovish."
The dollar index, which tracks the greenback against major currencies, eased on Tuesday, cooling after its longest winning streak in two years which was partly buoyed by investors piling into it as a preferred refuge amid worries over the trade row. [USD/]
In the latest development surrounding a logjam in Washington over funding for a border wall with Mexico, U.S. congressional negotiators on Monday reached a tentative deal to try to avert another partial government shutdown on Saturday, which investors fear could have an economic impact.
U.S. and Chinese officials expressed hopes that the new round of trade talks, which began in Beijing on Monday, would bring them closer to easing their nearly year-long trade war.
Investors will also be watching for further clarity on the Fed's monetary policy going forward, analysts said.
Spot gold rose to its highest since late April at $1,326.30 in January, after the Fed kept interest rates steady and said it would be patient on further hikes amid a cloudy outlook for the U.S. economy due to global growth concerns.
On the technical front, "if we now see short-term resistance break around $1,315, then this could lead to further technical follow-up buying pressure towards - and possibly beyond - January's high of $1,326," Forex.com's Razaqzada added.
Among other metals, palladium was 0.6 percent higher at $1,393.54 an ounce, while silver dipped 0.1 percent to $15.69.
Platinum firmed 0.1 percent to $782 an ounce, having touched its lowest since Jan. 2 at $779.50 in the previous session.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)