PRECIOUS-Gold eases as investors await Fed minutes

* Eyes on Fed minutes, Jackson Hole symposium for rate
outlook
* SPDR Gold holdings rise 0.2% on Tuesday

(Updates prices)
By Brijesh Patel
Aug 21 (Reuters) - Gold eased on Wednesday to hold around
the $1,500 level as investors cashed in some gains ahead of
minutes from the U.S. Federal Reserve's last meeting, which are
expected to shed more light on interest rate cuts.
Spot gold XAU= was down 0.5% at $1,499.51 per ounce as of
1232 GMT, while U.S. gold futures GCcv1 slipped 0.4% to
$1,509.60.
The metal is still up more than $80 this month after recent
strong gains fuelled by worries over the outlook for the global
economy, and the prospect of more U.S. interest rate cuts.
"The market is nervous while it waits for further cues on
the outcome of the Fed meeting minutes," said Jigar Trivedi, a
commodities analyst at Mumbai-based Anand Rathi Shares & Stock
Brokers.
However, "fundamentals for gold remain positive as central
bankers have increased their gold reserves amid geopolitical
tension, trade spats and signals of stimulus," he added.
Minutes from the Federal Open Market Committee's most recent
meeting in July - when the U.S. central bank cut interest rates
for the first time in a decade - are due on Wednesday.
Traders are also awaiting the central bank's annual Jackson
Hole seminar later this week, with major focus on a scheduled
speech by Fed Chair Jerome Powell.
Powell's comments are of particular interest after last
week's inversion of the U.S. yield curve - widely regarded as a
recession signal - boosted expectations the Fed would lower
interest rates at its September policy meeting. US/
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.
"Gold is declining below $1,500, confirming the
consolidation phase that has taken place in the last few days,"
ActivTrades analyst Carlo Alberto De Casa said in a note.
"Despite this, the main trend remains bullish, with further
rallies... likely in the medium term, while in the short term
the scenario is lateral, with prices that could draw a range
between $1,475 and $1,530."
On the trade front, U.S. President Donald Trump said on
Tuesday he had to confront China over trade even if it caused
short-term harm to the U.S. economy. The escalation in the trade war between the world's biggest
economies and an increasingly dovish shift in policy by central
banks have contributed to a more than 6% rise in gold this
month.
Indicative of sentiment, holdings of the world's largest
gold-backed exchange-traded fund, SPDR Gold Trust GLD , rose
0.2% to 845.17 tonnes on Tuesday from Monday. GOL/ETF
Among other precious metals, silver XAG= fell 0.35% to
$17.06 per ounce, while platinum XPT= edged 0.1% higher to
$849.06.
Palladium XPD= was steady at $1,491.38 per ounce.