PRECIOUS-Gold firms as equities sink; strong dollar caps gains

* Patience on interest rates to last 'for some time' - Fed
minutes
* SPDR Gold holdings down nearly 7% so far this year
* Platinum hits 3-month low

(Updates prices)
By Brijesh Patel
May 23 (Reuters) - Gold prices firmed on Thursday, supported
by a slide in equity markets amid fresh trade tensions, but a
strong dollar kept a lid on gains as investors flocked to the
safe-haven U.S. currency.
Spot gold XAU= was up 0.4% at $1,278.32 per ounce by 1213
GMT, after falling to its lowest since May 3 on Tuesday at
$1,268.97.
U.S. gold futures GCv1 were 0.3% higher at $1,277.60 an
ounce.
"We have the higher dollar and lower Chinese yuan pressuring
gold. At the same time, yields are a bit lower and equity
markets are down (supporting gold)," said ABN AMRO analyst
Georgette Boele.
"Gold is not really a safe-haven asset at the moment. There
are more offseting factors right now. Apparently there is no
real strong directional move in gold at these levels," she
added.
World shares were in the red as concerns grew that the
China-U.S. trade conflict was fast turning into a technology
cold war between the world's two largest economies. MKTS/GLOB
The White House is considering Huawei-like sanctions on
Chinese video surveillance firm Hikvision over the country's
treatment of its Uighur Muslim minority, a person briefed on
the matter said on Wednesday. Despite the broad risk-off sentiment, bids for bullion were
limited by the dollar index .DXY climbing to a one-month high
as economic and political uncertainties swept through Europe and
Asia, weighing on most other major currencies. USD/
Meanwhile, U.S. Federal Reserve officials at their last
meeting agreed that their current patient approach to setting
monetary policy could remain in place "for some time," a further
sign policymakers see little need to adjust rates. "Commentary reiterating officials' wait-and-see approach
amid a raft of global uncertainties may cool rate cut hopes,"
Ilya Spivak, senior currency strategist with DailyFx, said.
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar, making
gold cheaper for investors holding other currencies.
The sentiment was reflected in holdings of SPDR Gold Trust
GLD , the world's largest gold-backed exchange-traded fund,
which have declined nearly 7% so far this year.
SPDR holdings edged 0.1% lower to 738.81 tonnes on
Wednesday. GOL/ETF
Among other precious metals, silver XAG= rose 0.4% to
$14.50 per ounce, while palladium XPD= edged 0.1% higher to
$1,315.25.
Platinum XPT= fell 0.4% to $795.50 an ounce, after
touching its lowest level since Feb. 15 at $791 earlier in the
session.