PRECIOUS-Gold drifts off 14-month peak as investors focus on Fed

* SPDR Gold holdings rise 0.6% on Friday
* Money managers raise gold net longs in week to June 11
* U.S. Federal Reserve meeting due June 18-19

(Adds quotes, updates prices)
By Eileen Soreng and Diptendu Lahiri
June 17 (Reuters) - Gold prices slipped further from last
week's 14-month peak as investors awaited further clues on
interest rates from a U.S. Federal Reserve meeting due to begin
on June 18.
Spot gold XAU= fell by 0.2 % to $1,338.84 per ounce at
1249 GMT on Monday, after hitting $1,358.04, its highest since
April 11, 2018, on Friday. U.S. gold futures GCcv1 also eased
0.2%, to $1,342.40 an ounce.
The dollar index .DXY dropped 0.2%, having hit a two-week
high on strong U.S. economic data. FRX/
"The dollar is slightly down but the profit taking is
overpowering any tailwind," Julius Baer analyst Carsten Menke
said of the fall in gold prices.
Strong U.S. retail sales data on Friday slightly lowered
expectations of a rate cut, CME Group's FedWatch tool showed.
However, bets for monetary easing at the July meeting remain at
85%. Gold, often used by investors during times of uncertainty,
tends to gain on expectations of lower interest rates.
"We may ... see a bit of a correction in gold, with $1,320
being notable support to the downside," Craig Erlam, senior
market analyst with OANDA, said in a note.
Bullion marked a fourth consecutive week of gains on June
14, on the back of increased expectations for a U.S. Fed rate
cut and concerns about the impact of a tariff war between the
United States and China on global economic health.
The U.S. Trade Representative's Office will kick off seven
days of testimony from U.S. retailers, manufacturers and other
businesses about President Donald Trump's plan to hit another
$300 billion worth of Chinese goods with tariffs. Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.6% to 764.10 tonnes on
Friday from 759.70 tonnes on Thursday. GOL/ETF
Speculators also raised their net long positions in COMEX
gold in the week to June 11, the U.S. Commodity Futures Trading
Commission (CFTC) said on Friday. Silver XAG= fell 0.2% to $14.84 per ounce, while platinum
XPT= fell 0.6% to $794.17.
Palladium XPD= slid 1.3% to $1,445.90 per ounce.