PRECIOUS-Gold edges further back from record as dollar firms after Fed chair's remarks

By Ishaan Arora

Sept 18 (Reuters) - Gold retreated further on Thursday from the previous session's record high, pressured by an uptick in the dollar after the U.S. Federal Reserve adopted a measured tone on future easing following a widely expected 25 basis-point interest rate cut.

Spot gold XAU= was down 0.1% at $3,657.21 per ounce as of 0801 GMT. Prices hit a record high of $3,707.40 on Wednesday, before closing 0.8% down. U.S. gold futures GCcv1 for December delivery slipped 0.7% to $3,691.0.

The Fed reduced rates by 25 basis points on Wednesday and indicated it will steadily lower borrowing costs for the rest of this year.

Fed Chair Jerome Powell characterised the action as a risk-management cut in response to the weakening labor market, and said the Fed is in a "meeting-by-meeting situation" regarding the interest rate outlook.

"There is a bit of disappointment, which is reflected in the gold price, because the market expected that the opportunity cost for holding gold would decline (more strongly) than the Fed decided," Quantitative Commodity Research analyst Peter Fertig said.

The dollar .DXY was up 0.2% against its rivals, making gold more expensive for other currency holders. It fell to a more than 3-1/2 year low on Wednesday. USD/

Non-yielding bullion, considered a safe-haven asset during periods of geopolitical and economic uncertainty, tends to perform well in a low interest-rate environment.

Traders are currently pricing in a 90% chance of another 25-bp cut at the Fed's next meeting in October, according to the CME Group's FedWatch tool.

ANZ expects gold to outperform early in the easing cycle, the bank said in a note on Thursday. "Demand for haven assets amid the challenging geopolitical backdrop is likely to boost investor demand," it said.

Meanwhile, SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.44% to 975.66 tonnes on Wednesday from 979.95 tonnes on Tuesday. GOL/

Elsewhere, spot silver XAG= rose 0.1% to $41.70 per ounce, platinum XPT= gained 2% to $1,389.57 and palladium XPD= was steady at $1,154.0/oz.