July 20, 2018 / 4:24 AM / a year ago

PRECIOUS-Gold edges up as U.S. dollar trades below 1-year highs

    * Dollar falls after Trump's displeasure towards Fed's hikes
    * Spot gold may test support at $1,204.45/oz - technicals
    * Bullion down about 1.5 percent for the week
    * Palladium set to fall about 5 pct for the week

 (Adds comment, updates prices)
    By Karen Rodrigues
    BENGALURU, July 20 (Reuters) - Gold prices edged up in
volatile trade on Friday, after hitting a one-year low in the
previous session, as the U.S. dollar eased from its highest in a
    Spot gold        was trading at $1,224.55 an ounce at 0811
GMT. In the previous session, it fell to its weakest since July
last year at $1,211.08 an ounce.
    U.S. gold futures         were little changed at $1,224.40
an ounce.
    "Geopolitical tensions such as trade war are supporting gold
to some extent but investors are still not ready to hedge their
bets fully ... they think the current situation is only a hiccup
and things will smooth out after that," said Naeem Aslam,
ThinkMarkets.com chief market analyst.
    The dollar index       , which measures the greenback
against a basket of six major currencies, was down 0.03 percent
at 95.123, after U.S. President Donald Trump expressed concern
about the currency's strength and the Federal Reserve's interest
rate increases.       
    Trump on Thursday criticized Fed's policy even though most
economists believe the highest inflation in seven years and
lowest unemployment in 40 years justify recent interest rate
rises and a strong U.S. dollar.             
    This comes after Fed Chairman Jerome Powell's two-day
congressional testimony where he said the U.S. was on course for
years more of steady growth and reaffirmed expectations for more
interest rate rises.              
    Rising U.S. interest rates tend to boost the dollar and make
gold more expensive for other holders.
    Elsewhere, officials from the EU Trade Commission are due to
arrive in Washington next week for trade talks but the bloc is
preparing a list of U.S. imports to hit if the United States
imposes tariffs on EU cars.             
    Financial leaders of the world's 20 biggest economies meet
in Buenos Aires this weekend for the first time since China and
the United States put tariffs on $34 billion of each other's
    "It seems gold cannot really get anything going on the
upside," said INTL FCStone analyst Edward Meir.
    "Despite what the U.S. President said, investors quickly
concluded that his opinions do not count much when it comes to
the Federal Reserve actions."
    Spot gold may test a support at $1,204.45 per ounce, a break
below which could cause a loss to the next support at $1,194,
Reuters technical analyst Wang Tao said.
    In other precious metals, silver        rose 0.9 percent to
$15.41 an ounce. It was down about 2.5 percent for the week so
    Palladium        gained over 2 percent at $889 an ounce. The
metal was set to fall about 5 percent for the week.
    Platinum        was 0.9 percent higher at $811.80 per ounce.

 (Reporting by Karen Rodrigues in Bengaluru; Editing by
Gopakumar Warrier)
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