PRECIOUS-Gold dips on technical selling and stronger dollar

* Spot gold expected to test resistance at $1,307
-technicals
* SPDR gold holdings fall to near Oct. 9 levels

(Updates prices, adds detail)
By Brijesh Patel
May 16 (Reuters) - Gold prices slipped on Thursday,
pressured by technical selling after repeatedly failing to
breach $1,300 this week and as the dollar gained on the back of
strong economic data from the United States.
Spot gold XAU= was down 0.4% at $1,291.47 an ounce at 1301
GMT and U.S. gold futures GCcv1 slipped 0.5% to $1,291.70.
"We have seen repeated attempts in the last few days to rise
above $1,300 and it (gold) appears to be facing some kind of
barrier. There is clearly some selling when it hits that level,"
said Capital Economics analyst Ross Strachan.
Adding further pressure to bullion, the dollar index .DXY
rose after data showed U.S. homebuilding increased more than
expected in April and unemployment benefits fell more than
expected last week, pointing to sustained labour market strength
that should underpin the economy. USD/ European equities rose, erasing earlier losses, while the
euro gained in volatile trade as the threat of automotive
tariffs were pushed back. MKTS/GLOB
"Gold seems to have reached a temporary detente at these
levels with momentum too weak to push it either way. The
geopolitical premium appears to be baked into the price for
now," OANDA analyst Jeffrey Halley said in a note.
The latest move from Washington to blacklist Chinese
telecoms giant Huawei tempered hopes of a breakthrough in an
escalating trade conflict that has rattled financial markets and
compounded fears of a slowdown in global growth after weak
economic data from China. "The ongoing trade tensions between the two largest
economies and an increasing potential for a more negative growth
scenario should be supportive for gold," Capital Economics'
Strachan added.
On the technical front, spot gold is expected to test
resistance at $1,307, a break above which could lead to a gain
to $1,322, said Reuters technical analyst Wang Tao. Meanwhile, SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, said holdings fell 0.4% to
733.23 tonnes on Wednesday. Holdings are now close to their
lowest levels since Oct. 9. GOL/ETF
Among other metals, silver XAG= was down 0.4 % at $14.74
an ounce while platinum XPT= fell 0.2% to $843.65.
Palladium XPD= lost 1% to $1,331.30 and has slumped by
about 17 percent since the metal used in catalytic converters in
car exhaust systems scaled a record peak of $1,620.53 in March.
"At the movement it (palladium) seems to be consolidating
after a hefty decline," Strachan said. "The bigger picture for
palladium is still substantial weakness in autos demand."