PRECIOUS-Gold eases on firmer dollar and profit-taking

By Ishaan Arora

Aug 27 (Reuters) - Gold slipped on Wednesday as the dollar firmed and investors booked profits after prices hit a more than two-week high in the previous session.

Spot gold XAU= was down 0.5% at $3,375.79 per ounce at 1119 GMT. U.S. gold futures GCcv1 for December delivery eased 0.2% to $3,425.10.

The dollar index .DXY, which measures the greenback against a basket of major currencies, rose about 0.4%, making dollar-priced bullion more expensive for other currency holders. USD/

"(Gold) prices are acting less like an arrow and more like a feather, with the prevailing direction of travel determined by the dollar. Current gold price weakness is likely attributable to some profit-taking...as momentum faded to the upside," independent analyst Ross Norman said.

Bullion hit its highest since August 11 on Tuesday after U.S. President Donald Trump's attempt to fire Fed Governor Lisa Cook undermined confidence in the independence of the central bank and more broadly in U.S. assets, boosting safe-haven demand.

Cook will file a lawsuit to prevent Trump from firing her, her lawyer said, kicking off what could be a protracted legal fight over the White House's effort to shape U.S. monetary policy.

"Market participants will await the decision of U.S. courts (regarding whether) Trump can fire Cook or not, before gold reacts more strongly," UBS analyst Giovanni Staunovo added.

The data focus is on the Fed's preferred inflation gauge, the Personal Consumption Expenditures Price Index, due on Friday, after dovish remarks from Fed Chair Jerome Powell at the Jackson Hole symposium last week.

Markets have priced in an 87% chance of a quarter-point rate cut at the Fed's September 17 policy meeting, according to the CME FedWatch Tool.

Non-yielding gold typically performs well in a low-interest-rate environment.

Spot silver XAG= fell 0.8% to $38.27 per ounce, platinum XPT= was also down 0.8% at $1,337.38 and palladium XPD= was 0.2% lower at $1,091.99.