PRECIOUS-Gold hits two-week low on doubts over further U.S. rate cuts

* Silver dips to two-week low, platinum slips
* Palladium hits over one-month trough
* Investors await U.S. jobs report

(Updates prices)
By Swati Verma
Aug 1 (Reuters) - Gold slipped to a two-week low on
Thursday, a day after the U.S. Federal Reserve cut interest
rates for the first time in a decade but dampened expectations
of future rate reductions, which sent the dollar to a 26-month
peak.
Spot gold XAU= fell 0.6% to $1,404.81 per ounce as of 1215
GMT, after falling to its lowest since July 17 at $1,402.15.
U.S. gold futures GCcv1 slid 1.5% to $1,404.90 an ounce.
U.S. Fed Chairman Jerome Powell sent "mixed messages" with
his forward guidance when he cut U.S. rates by 25 basis points,
the first cut since the global financial crisis in 2008, FXTM
analyst Lukman Otunuga said.
"The key takeaway that is causing gold to trade lower is
that Powell said it's not the beginning of a long series of rate
cuts. Markets are now questioning whether it's a one-and-done
(step)," he added. After the Fed comments, the dollar index .DXY rose to its
highest since May 2017, making the non-yielding bullion
expensive for holders of other currencies. USD/
"The dollar has broken out on the charts and looks like it
is going to push higher still, yet another reason to pursue
caution when it comes to the long side in the precious group,"
INTL FCStone analyst Edward Meir said in a note.
Gold posted its third straight month of gains in July,
having reached its highest in six-years at $1,452.60 on July 19.
On the technical side gold was still holding above the
psychologically important $1,400 level.
Lower interest rates and resurgent investor and central bank
buying are expected to help gold prices cement recent gains and
hold above $1,400 an ounce next year, a Reuters poll showed on
Thursday. PREC/POLL
"In the long term, gold is still supported even though the
Fed may disappoint markets, other major central banks across the
globe are expected to cut rates," Otunuga said.
"Future rate cuts will be contingent on economic data from
the United States and U.S.-China trade developments."
Investors are now awaiting the release of U.S. non-farm
payrolls data on Friday.
"Even if gold were to come under further pressure as a
result of a good U.S. labour market report ... , we would regard
this as 'merely' a correction within an intact upswing,"
Commerzbank analysts said in a note.
Elsewhere, silver XAG= was down 1.7% at $15.98 per ounce,
after touching a two-week low of $15.88 earlier in the session.
Platinum XPT= was 1% lower at $850.95 an ounce, after
falling to its lowest since July 23 at $845, while palladium
XPD= dropped about 2% to $1,485.89, its lowest since June 21.