Gold prices were little changed on Thursday following a steep fall in the previous session, as investors waited on any Sino-U.S. trade developments later this week, while bulls rolled back hopes of big U.S. interest rate cuts.

Spot gold was down 0.1% at $1,407.25 per ounce at 0350 GMT. Prices fell more than 1% in the previous session after U.S. Federal Reserve officials dented expectations of aggressive interest rate cuts. U.S. gold futures were 0.3% lower at $1,411 an ounce.

“There appears to be some fatigue around pre-announcements on the trade issues ... If we don't see any sort of agreement, then we can see support for gold coming back, but in the meantime that modulation is expected to weigh on gold prices,” said Michael McCarthy, chief market strategist, CMC Markets.

“This looks like a corrective action at the moment,” he said, adding that a slight uptick in the U.S. dollar is also pressuring gold prices. U.S. President Donald Trump on Wednesday said a trade deal with Chinese President Xi Jinping was possible this weekend but warned he was prepared to impose U.S. tariffs on virtually all remaining Chinese imports if talks fail.

Trump raised the possibility that he may impose a lower, 10% duty on a $300 billion list of Chinese imports, instead of the proposed 25% rate. On the technical side, spot gold may stabilise around a support at $1,404 per ounce, and bounce towards a resistance at $1,421, according to Reuters technical analyst Wang Tao.

Among other precious metals, silver edged 0.1% higher to $15.25 per ounce, while platinum fell 0.3% to $811.41. Palladium rose 0.3% to $1,527 an ounce.

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