PRECIOUS-Gold eases as robust U.S. data trims aggressive rate cut hopes

(Adds comments, details; Updates prices)
* Palladium slumps over 3% to a three-week low of $1,510/oz
* Silver hits more than four month high of $15.69/oz
* Platinum scales two-month peak of $850.62/oz
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By K. Sathya Narayanan
July 16 (Reuters) - Gold prices fell on Tuesday after
better-than-expected U.S. retail sales data lowered expectations
of an aggressive interest rate cut by the U.S. Federal Reserve,
boosting the dollar.
Spot gold XAU= inched down 0.4% to $1,408.74 per ounce as
of 1:36 p.m. EDT (1736 GMT). U.S. gold futures GCcv1 settled
about 0.2% lower at $1,411.20.
"The (gold) market is more reliant on the macro factors to
be driven higher. If we continue to see stronger data like the
retail numbers, it presents a headwind for the market," said
Suki Cooper, precious metals analyst at Standard Chartered Bank.
"The key event the market is tracking is the July FOMC
meeting and the Fed rate cut expectations, and we have seen that
the expectations have declined a little bit."
The U.S Commerce Department said retail sales rose 0.4% last
month as households stepped up purchases of motor vehicles and a
variety of other goods. The dollar .DXY rose 0.5% against major rivals on the
upbeat U.S. data, making greenback-denominated assets costlier
for investors holding other currencies. USD/
"We've seen a return to big-news-is-bad-news scenario
whereby a strong piece of data, which could discourage the U.S.
Fed from cutting interest rates, is having big implications on
the market," OANDA senior market analyst Craig Erlam said.
Meanwhile, spot palladium XPD= fell over 3% to touch its
lowest in three weeks at $1,510 per ounce. The metal was last
down about 3.3% at $1,516.43 per ounce.
U.S. President Donald Trump said Washington still has a long
way to go to conclude a trade deal with China but could impose
tariffs if needed. Trump earlier said that slowing economic growth in the
world's second largest economy showed U.S. tariffs were having
"a major effect" and Washington could add pressure. "(The drop in prices) are due to a combination of weak
economic growth in China along with a technically driven selloff
after reaching a strong level of resistance," David Meger,
director of metals trading at High Ridge Futures said adding,
Trump's comments were an "added negative."
The auto-catalyst metal briefly surpassed a key
psychological level of $1,600 on Thursday, a level last touched
in March. The failure to sustain above the recent high has
caused a bout of profit taking, Meger said.
Among other precious metals, silver XAG= rose 1.5% to
$15.62 per ounce, after touching its highest since Feb. 28 at
$15.69 earlier in the session.
Platinum XPT= was up 0.2% at $840.98, after touching its
highest since May 15 at $850.62.