Gold steadies before Brexit summit

BENGALURU, Oct 15 (Reuters): Gold steadied on Tuesday, moving in a tight range, after hopes of progress in U.S-China trade talks were tempered and ahead of a summit that will determine how Britain leaves the European Union.

Palladium hit a record high, continuing its stellar run driven by a sustained supply crunch.

Spot gold edged up 0.1 per cent to $1,494.29 per ounce as of 1003 GMT. US gold futures rose 0.1 per cent to $1,498.40.

"We've had the initial lukewarm response to phase one of the trade deal ... the risk of profit-taking in gold has not really emerged. We're still holding onto levels not far from the $1,500 area," Saxo Bank commodity strategist Ole Hansen said.

The United States on Friday outlined the first phase of a trade deal and suspended this week's scheduled tariff hikes on Chinese goods. Bloomberg reported on Monday that China wanted more talks to hammer out the details of the phase-one deal before signing it.