* U.S. ISM non-manufacturing report due later in the day
* Global shares climb back towards record highs
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl (Updates prices)
By Asha Sistla
Nov 5 (Reuters) - Gold fell on Tuesday as optimism over U.S.-China trade ties and fading fears of a recession buoyed European stocks, deflecting investors' interest from the safe-haven metal.
Spot gold XAU= fell 0.5% to $1,502.21 per ounce at 1211 GMT, while U.S. gold futures GCcv1 was down 0.5% to $1,504.
"Gold investors are leaving safe-havens and sailing into more risky waters," Quantitative Commodity Research analyst Peter Fertig said.
Not just the signing of a deal, but a clear signal of an improvement in the economic situation may cause gold to fall and break out of its current range, he added.
World shares climbed back towards record highs as hopes that Washington may roll back some of the tariffs it has imposed on Chinese imports kindled optimism on the global economic outlook. MKTS/GLOB
China hopes for the removal of more tariffs imposed by the United States in September as part of a "phase one" U.S.-China trade deal, which may be signed this month by U.S. President Donald Trump and Chinese President Xi Jinping. the economy recovers as the U.S. Federal Reserve expects, there might be no further rate cuts next year and that is another factor weighing currently on gold," QCR's Fertig said.
Last week, the U.S. Federal Reserve cut interest rates for a third time this year, but signalled there would be no further reductions unless the economy takes a turn for the worse. data last week showed U.S. job growth had slowed less than expected in October, investors now await a U.S. ISM non-manufacturing report due on Tuesday that is forecast to show activity accelerated slightly in October. the technical front, "the main trend remains positive, even if markets seem to be waiting for fresh catalysts. In the short term, there is now clear directionality, with prices moving between $1,480 and $1,520," Carlo Alberto De Casa, ActivTrades' chief analyst, said in a note.
Among other metals, silver XAG= edged 0.1% lower to $18.03 per ounce and platinum XPT= fell 0.1% to $934.38 per ounce.
Palladium XPD= rose 0.2% to $1,781.72 an ounce, after sliding 1.5% in the previous session. The metal hit an all-time high of $1,824.50 on Oct. 30, driven by a sustained supply crunch for the autocatalyst metal.
"With palladium expected to stay in deficit and new mine-supply additions lacking next year, prices are likely to remain propped up to incentivize more scrap supply and curb demand growth," UBS commodity analyst Giovanni Staunovo said in a note.