PRECIOUS-Gold eases as dollar holds firm after robust U.S. data

* Dollar hits one-week high
* Silver holds steady near four-month high
* Fed to issue the Beige Book of economic conditions at 1800
GMT

(Adds quote, updates prices)
By Karthika Suresh Namboothiri
July 17 (Reuters) - Gold slipped on Wednesday as the dollar
held near a one-week high on the back of better-than-expected
retail sales data from the United States, while investors waited
for direction on interest rates from the U.S. Federal Reserve.
Spot gold XAU= fell 0.3% to $1,402.42 per ounce as of 1131
GMT. Prices were on track for a third straight session of losses
as robust U.S. data trimmed expectations of an aggressive
interest rate cut by the Fed.
U.S. gold futures GCcv1 for August delivery shed 0.5% to
$1,403.80.
"We're seeing a delayed reaction (in gold) considering
yesterday's movement in the foreign exchange market," said
Quantitative Commodity Research analyst Peter Fertig.
"It is crucial for gold to hold above $1,400. If prices fall
slightly below this level, we should see some buying interest
coming in and pushing prices higher."
The dollar .DXY was marginally lower against a basket of
six major currencies at 97.325 after gaining 0.5% the previous
day following a rise in U.S. retail sales numbers. The U.S.
currency held near a one-week high. The data dampened expectations that the Fed could cut
interest rates by 50 basis points (bps) rather than 25 bps at
its month-end policy review. USD/
Chicago Fed President Charles Evans said on Tuesday that an
interest rate cut of a half a percentage point at the U.S.
central bank's July 30-31 policy meeting could mean that the
Fed's inflation goal is reached sooner. Investors are now awaiting the Fed's Beige Book later in the
day for insight on how trade tensions are affecting the business
outlook.
Gold is highly sensitive to rising interest rates, which
lift the opportunity cost of holding non-yielding bullion. They
also boost the dollar, in which the metal is priced.
In the latest on the trade row, U.S. President Donald Trump
said on Tuesday the United States still has a long way to go to
conclude a deal with China but could impose tariffs on an
additional $325 billion worth of Chinese goods if needed.
"Gold remains locked within the $1,400 - $1,420 range, while
more broadly we look for a move outside of $1,380 - $1,440 for
medium-term direction," trading firm MKS PAMP said in a note.
Meanwhile, silver XAG= rose 0.4% to $15.62, extending
gains for a fourth straight session. It hovered close to a more
than four-month high of $15.69 it hit on Tuesday.
"Silver ETFs have continued to register substantial inflows
in recent days – inflows since the start of the month have
exceeded 600 tons," Commerzbank wrote in a note.
"It appears that the pronounced ETF inflows are gradually
having an impact after all."
Amongst other precious metals, platinum XPT= fell 0.4% to
$834.99 per ounce, while palladium XPD= dropped 0.4% to
$1,518.71.