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PRECIOUS-Gold little changed as traders seek clarity on trade war direction

* Gold may peak at $1,546-$1,568/oz range -techs

Markets fully priced in for a 25 bp cut in Sept by U.S. Fed (Adds comments, details, updates prices)

By Harshith Aranya

Aug 27 (Reuters) - Gold prices were largely steady on Tuesday, retreating from an over six-year peak hit in the previous session, as U.S. President Donald Trump signaled a possible reconciliation with China, calming worries about an escalation in their trade war.

Spot gold was up 0.1% to $1,528.10 per ounce, as of 0347 GMT.

Gold prices on Monday surged to their highest in more than six years, surpassing the $1,550 mark in early trade, before paring gains after Washington and Beijing indicated a possible thaw in their trade spat.

The non-yielding bullion is often seen as a safer investment during times of political and financial uncertainty.

U.S. gold futures were up 0.1% to $1,538 an ounce.

"Prices are steady because of the conciliatory tone both China and Trump sounded yesterday; the market started to hope that there is some deal coming out of the trade dispute," said Helen Lau, analyst, Argonaut Securities.

Lau added that hopes for monetary policy easing by central banks across the globe provided some support for the bullion.

On Monday, U.S. President Donald Trump on Monday flagged the possibility of a trade deal with China, and said he believed Beijing was sincere in its desire to reach an agreement.

Chinese Vice Premier Liu He, who has been leading the talks with Washington, said on Monday that China opposed any escalation in trade tensions.

Global markets had been roiled at the start of the week by new tariffs from the world's two largest economies.

However, underscoring the possibility of further sudden U-turns and keeping gold from diving further, just on Sunday the White House had said Trump regretted not raising the tariffs on China even more.

"More cynical heads are clearly ruling the gold market at the moment, and are refusing to listen to the short-term noise from the White House," OANDA analyst Jeffrey Halley wrote in a note.

On the technical side, spot gold may peak in a range of $1,546-$1,568 per ounce, as suggested by its wave pattern and a projection analysis, according to Reuters technical analyst Wang Tao.

On the back of widespread risk-on sentiment, the benchmark 10-year U.S. Treasury yield pulled back from a three-year low, which it reached on Monday.

Higher bond yields increase the opportunity cost of holding bullion, and also supports the dollar.

The dollar index, which measures the greenback's value against a basket of six major currencies, rose about 0.5% overnight.

The markets are also fully priced for a quarter-point cut by the U.S. Federal Reserve in rates next month, and over 100 basis points of easing by the end of next year.

Elsewhere, silver was flat at $17.64 an ounce, and platinum too was unchanged at $855.

Palladium fell 0.2% to $1,470.20 per ounce. (Reporting by Harshith Aranya and K. Sathya Narayanan in Bengaluru, Editing by Sherry Jacob-Phillips and Rashmi Aich)