(Corrects spelling in first paragraph)
July 17 (Reuters) - Gold prices edged lower on Wednesday,
but still held above the psychological $1,400 level, as the
dollar gained after robust U.S. retail sales tempered fears of a
sharp downturn in the world's largest economy.
FUNDAMENTALS
* Spot gold XAU= was down 0.1% at $1,405.26 per ounce, as
of 0104 GMT.
* U.S. gold futures GCv1 slipped 0.3% to $1,406.90 an
ounce.
* The Commerce Department said retail sales rose 0.4% last
month as households stepped up purchases of motor vehicles and a
variety of other goods. Economists polled by Reuters had
forecast retail sales edging up 0.1% in June. * The dollar was firm on Wednesday after upbeat U.S. data
tempered expectations of aggressive policy easing by the Federal
Reserve later this month. USD/
* The dollar index .DXY against a basket of six major
currencies was effectively unchanged at 97.363 after gaining
0.5% the previous day.
* U.S. Treasury yields also rose on strong data, adding to
recent evidence that the economy is improving. US/
* However, Fed Chairman Jerome Powell on Tuesday reiterated
pledges to "act as appropriate" to keep the U.S. economy
humming, in a speech that did not deviate from expectations that
a rate cut is on the way. * Futures FEDWATCH are 100% priced for a cut of 25 basis
points, and imply a 27% chance of 50 basis points.
* Meanwhile, President Donald Trump said on Tuesday the
United States still has a long way to go to conclude a trade
deal with China but could impose tariffs on an additional $325
billion worth of Chinese goods if it needed to do so.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.15% to 799.37
tonnes on Tuesday from 800.54 tonnes on Monday. GOL/ETF
DATA AHEAD (GMT)
* 0830 UK CPI YY June
* 0900 EU HICP Final MM June
* 0900 EU HICP Final YY June
* 1230 US Housing Starts Number June
* 1800 US Federal Reserve issues the Beige Book of
economic condition