PRECIOUS-Gold retreats on robust U.S. retail sales data, but holds at 14-month peak

* Gold hit over 14-month high of $1,358.04/oz earlier in
session
* Palladium sees best week since April 2018
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

(Adds comments, details and graphic, updates prices)
By Karthika Suresh Namboothiri
June 14 (Reuters) - Gold prices retreated on Friday as
upbeat U.S. retail sales somewhat eased fears that the economy
was slowing down in the second quarter.
Prices had jumped 1% earlier in the session on market
expectations of at least two U.S. central bank rate cuts in
2019.
Spot gold XAU= dipped 0.2% to $1,339.49 per ounce as of
1:55 p.m. EDT(1755 GMT). Prices rose to a high of $1,358.04,
last touched on April 11, 2018.
U.S. gold futures GCcv1 settled 0.1% higher to $1,344.50
per ounce.
"Because of growing fears of a recession every participant
is wondering is it time when gold is going to break out of this
range, and trade substantially higher," said Daniel Ghali,
commodity strategist at TD Securities.
"At the same time expectations of a Fed cut are growing.
Gold obviously performs well in that environment."
Robust U.S. retail sales in May suggested a pickup in
consumer spending that could ease fears the economy was slowing
down sharply in the second quarter. The data has "dispelled the
need for an immediate Fed cut. The market is just paring back
its expectations a little bit," Ghali added.
Recent soft U.S. economic readings have boosted expectations
of a U.S. Federal Reserve interest rate cut. Policymakers are
scheduled to meet June 18-19, with financial markets pricing in
at least two rate cuts by year-end.
In addition to weighing on the dollar, lower interest rates
also cut the opportunity cost of holding non-yielding bullion.
A China-U.S. trade war has threatened to escalate,
potentially pushing the global economy into recession.
Trade tensions have also spurred concerns about China's
economy, with industrial output growth unexpectedly slowing to a
more than 17-year low and investment cooling. "We are very sensitive right now to economic growth
forecasts," said David Meger, director of metals trading at High
Ridge Futures, adding that the pullback in bullion was largely
technical as prices had closed in on $1,360, an area of
resistance for the gold market.
The ratio between industrial metal copper CMCU3 , often
viewed as an indicator of economic growth, and safe-haven spot
gold XAU= jumped to its highest since late-2016.
Among other precious metals, spot silver XAG= fell 0.6% to
$14.81 per ounce, while platinum XPT= dipped 1.2% to $798.23.
Palladium XPD= gained 1.3% to $1,463.52 per ounce, on
track for its best week since April 2018. Prices were up for a
seventh straight daily session.

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Graphic-2019 asset returns: http://tmsnrt.rs/2jvdmXl
Gold-Copper Ratio Surges https://tmsnrt.rs/2Ig0yPJ
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