PRECIOUS-Gold slips on strong dollar but weak U.S. data caps losses

* SPDR Gold holdings rise 0.6% on Monday
* Dollar rises to highest level in over a month
* Market eyes Fed policy meeting on July 30-31

(Updates prices)
By Karthika Suresh Namboothiri
July 23 (Reuters) - Gold inched down on Tuesday to its
lowest level in a week as a robust dollar offset weak U.S.
economic data, and investors awaited clearer signals on the
Federal Reserve's trajectory for interest rates.
Spot gold XAU= was down 0.3% at $1,420.45 per ounce as of
13:47 p.m EDT (1747 GMT), having touched its lowest since July
17 at $1,413.80 earlier in the session. U.S. gold futures
GCcv1 settled 0.4% lower at $1,421.70.
Gold briefly pared losses following weaker-than-expected
U.S. home sales and monthly manufacturing data from the Richmond
Fed. "The Richmond print raised a few eyebrows, though it's
really not that important of a figure, but seemed to have
triggered some buying," said Tai Wong, head of base and precious
metals derivatives trading at BMO.
"Gold is likely to stay within the $1,415-35 range with the
market getting all bulled up above $1,430 and hand-wringing
below $1,420."
The dollar rose to its highest in more than a month .DXY ,
supported by a deal to extend the U.S. government's debt limit,
making greenback denominated assets such as gold costlier for
investors holding other currencies. USD/ "You've seen a sharp upward move over the past weeks in
gold. The momentum seems to have been lost and some short-term
investors have looked to take those healthy profits ahead of the
U.S. Federal Reserve decision next week," said Capital Economics
analyst Ross Strachan.
Investors are eyeing the Fed's July 30-31 policy meeting at
which it is expected to cut its overnight benchmark lending
rate. The European Central Bank (ECB) is also expected to signal
easier monetary policy when it meets on Thursday.
The repricing among investors in favor of a 25-basis-point
Fed rate cut instead of a 50-point cut is constraining gold,
said Ryan McKay, a commodity strategist at TD Securities.
Among other precious metals, silver XAG= rose 0.5% to
$16.42 an ounce.
"Silver has authenticated gold's rally. ... What this has
done is put the gold-silver ratio down to a level which you
might not ordinarily expect, just below 87," said Ross Norman,
chief executive of bullion dealer Sharps Pixley.
Holdings of the largest gold-backed ETF, New York's SPDR
Gold Trust, rose 0.6% on Monday from Friday, while the largest
silver-backed ETF, the iShares Silver Trust SLV , rose 2.6%
during the same period.
Holdings in the silver ETF have risen about 10% so far this
month. GOL/ETF
Elsewhere, palladium XPD= dipped 0.5% to $1,521.01 an
ounce, while platinum XPT= rose 1.3% to $855.25 an ounce.

(Editing by Richard Chang)