PRECIOUS-Gold eases on prospect of U.S.-China trade war truce

Sumita Layek

(Updates prices, adds comment and details)

* Asian stocks rise, dollar hovers near two-week peak

* Fed officials' outlook for U.S. economy favorable- Powell

* U.S. consumer confidence data due at 1500 GMT

Nov 26 (Reuters) - Gold fell to a two-week low on Tuesday as talks between top negotiators from the United States and China boosted prospects that an interim trade deal could be reached soon, denting demand for the safe-haven metal.

Spot gold was down 0.1% to $1,454.19 per ounce by

0331 GMT, having fallen to its lowest since Nov. 12 earlier in

the session. U.S. gold futures inched 0.2% lower to

$1,453.80. "We're seeing some momentum and signs of progress in the trade talks; also expecting some good (economic) data this week and all this is collectively providing optimism. It is 'risk on', so gold prices are under pressure," Phillip Futures analyst Benjamin Lu said. China's Vice Premier Liu He, U.S. Trade representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin held a phone call on issues related to a phase one agreement, two days after a report that Beijing and Washington are "moving closer to agreeing" on the deal.

Asian stocks rose and the dollar hovered near

two-week highs on growing hopes that the world's top two economies will reach an agreement soon. Markets also welcomed further signs of a de-escalation, with China saying on Sunday it would improve protections for intellectual property rights. "On the flip side, there hasn't been much substantial detail other than they (U.S., China) are working very closely, and besides the U.S., other parts of the world are still showing slow economic growth, so gold will still be supported," Lu said. Gold, considered a safe asset in times of political and economic uncertainty, has gained more than 13% this year, mainly due to the tariff dispute and its impact on global economic growth. The U.S. Federal Reserve chair Jerome Powell said on Monday officials have a favorable outlook for the U.S. economy.

However, weak global growth and trade uncertainty are holding back growth and they will "respond accordingly" if economic data leads to a "material reassessment" of their outlook, Powell said. The central bank cut interest rates three times this year before deciding to pause. Lower interest rates reduce the opportunity cost for holders of bullion, an asset that brings no interest. Under investors' radar now is U.S. consumer confidence data due at 1500 GMT.

Elsewhere, silver shed 0.3% to $16.85 per ounce,

after touching a one week low.

Palladium rose 0.1% to $1,798.99 per ounce andplatinum was up 0.1% to $897.44.

(Reporting by Sumita Layek in Bengaluru; Editing by Shailesh Kuber)