* Eyes on Fed minutes, Jackson Hole symposium for rate outlook
* SPDR Gold holdings rise 0.2% on Tuesday
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 was down 0.5% at $1,499.51 per ounce as of 1232 GMT,
while U.S. gold futures 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.
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 , rose 0.2% to
845.17 tonnes on Tuesday from Monday.
Among other precious metals, silver fell 0.35% to $17.06 per
ounce, while platinum edged 0.1% higher to $849.06.
Palladium was steady at $1,491.38 per ounce.
(Reporting by Brijesh Patel in Bengaluru Editing by Alexandra Hudson
and Jan Harvey)
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