PRECIOUS-Gold drops on profit-taking; set for 3rd weekly rise

* Gold up 1.2% so far this week
* Speculation grows of aggressive central bank easing
* Silver set for second week of gains
* Gold may fall into $1,483-$1,503/oz range -techs

(Recasts, updates prices)
By Harshith Aranya
Aug 16 (Reuters) - Gold slipped on Friday as investors
locked in profits and equities recovered, but fears over a
global economic slowdown and a lack of clarity on the U.S.-China
trade war kept the metal on track for its third consecutive
weekly gain.
Spot gold XAU= was down 0.6% at $1,513.80 per ounce as of
0729 GMT, but is up 1.2% so far this week after rising in the
previous two weeks.
U.S. gold futures GCcv1 dipped 0.3% to $1,525.50 an ounce.
Limiting gold's momentum, global financial markets regained
footing on Friday, as China hinted at more support for its
economy, amid growing expectations of aggressive stimulus from
all the major central banks. MKTS/GLOB "Gold is consolidating here. The important consideration is
that none of the headwinds have gone away; the tariffs got
delayed a bit, but the underlying trade war remains and lower
yields are supportive for gold," said Ilya Spivak, senior
currency strategist with DailyFx.
"Markets are looking ahead for the Jackson Hole symposium.
In context of recent gains that might give us some corrective
pullbacks, as people reduce risk exposure before events."
U.S. President Donald Trump said on Thursday he believed
China wanted to make a trade deal and that the dispute would be
fairly short. This comes after Beijing vowed to counter the latest tariffs
on $300 billion of Chinese goods but called on the United States
to meet it halfway on a potential trade deal. Earlier this week, 10-year Treasury yields dropped below the
2-year yield for the first time in 12 years. Curve inversion is
widely considered a warning that the economy is headed for
recession. US/
Bullion has risen more than $100, since the beginning of the
month amid the heightened trade tensions and a slew of
disappointing economic data globally.
"The yellow metal continues to benefit from safe-haven
inflows, which should ensure that any pullbacks are limited
ahead of the weekend," OANDA analyst Jeffrey Halley, said in a
note.
Investors will shift their focus to the Federal Reserve's
annual symposium next week. Traders see about a one-in-three
chance of a 50 basis-point rate cut by the Fed this September.
FEDWATCH
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar.
However, the dollar index .DXY edged higher on Friday and
was on course for a weekly gain. USD/
On the technical side, spot gold may fall into a range of
$1,483-$1,503 per ounce, as suggested by its wave pattern and a
retracement analysis, said Reuters technical analyst Wang Tao.
Elsewhere, silver XAG= slipped 0.7% at $17.15 per ounce
but was on track for a second consecutive weekly gain.
Platinum XPT= fell 0.3% to $836.36 an ounce, while
palladium XPD= rose 0.3% to $1,448.52 an ounce.

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