PRECIOUS-Gold jumps as Fed Chair remarks boost rate cut hopes

* Powell: Fed will act "as appropriate" to sustain economic
growth
* FOMC's June meeting minutes to be released at 1800 GMT
* SPDR Gold holdings fell 0.2% on Tuesday

(Adds comment, details, updates prices)
By Eileen Soreng
July 10 (Reuters) - Gold reversed course to jump nearly 1%
on Wednesday after Federal Reserve Chairman Jerome Powell
highlighted risks to the U.S. economy and bolstered expectations
of an interest rate cut later this month.
In prepared remarks to a congressional committee, Powell
said concerns about trade policy and a weak global economy
"continue to weigh on the U.S. economic outlook" and the Fed
stood ready to "act as appropriate" to sustain a decade-long
expansion. Powell will present his remarks and take questions from
members of the U.S. House of Representatives Financial Services
Committee beginning at 10 a.m. EDT (1400 GMT), and will testify
again on Thursday before the Senate Banking Committee.
Spot gold XAU= was up 0.8% to $1,409.36 per ounce at 1303
GMT, reversing a decline earlier in the session.
U.S. gold futures GCv1 were up 0.8% to $1,411.3 per ounce.
"Powell's done enough to convince traders he is not closing
the door but leaving it ajar with regards to rate cuts
referencing a weaker economy, referencing business growth and
stagnating economic growth," said Craig Erlam, senior market
analyst with OANDA.
"This is as dovish as we could have potentially hoped for
and the gold market has jumped straight on that. The dollar has
come off and gold in tandem has rebounded higher."
Helping bullion's reversal, the dollar .DXY fell against a
basket of currencies following Powell's remarks. Market
participants will now scan minutes from the Fed's June meeting,
due later in the day.
Expectations for a 50 basis point rate cut this month have
faded after forecast-beating job gains reported last week, but
investors still expect a 25 basis point cut due to weak
inflation and U.S.-China trade war worries. FEDWATCH
"Supportive interest towards $1,380 should provide a base
over the near term, with potential extension towards $1,360.
Resistance meanwhile cuts in initially at $1,400, with extension
toward $1,410," MKS PAMP said in a note.
Meanwhile, holdings of SPDR Gold Trust GLD , the world's
largest gold-backed exchange-traded fund, fell 0.22% to 794.08
tonnes on Tuesday from 795.80 tonnes on Monday. GOL/ETF
On the trade front, White House economic adviser Larry
Kudlow said U.S. and Chinese trade officials held a
"constructive" phone conversation on Tuesday, marking a new
round of talks after the world's two largest economies agreed to
a truce in a year-long trade war. Among other precious metals, silver XAG= gained 1.1% to
$15.26 per ounce, and palladium XPD= was up 2.1% at $1,578.69.
Platinum XPT= rose 2.2% to $823.72 an ounce.