PRECIOUS-Gold slips as upbeat US data boosts dollar, dims rate-cut bets

By Ishaan Arora

Jan 16 (Reuters) - Gold extended its losses on Friday after stronger-than-expected U.S. economic data reduced expectations of near-term Federal Reserve rate cuts, while easing geopolitical tensions shrunk demand for safe-haven bullion.

Spot gold XAU= eased 0.2% to $4,604.29 per ounce by 0733 GMT. However, the metal is poised for a weekly gain of about 2% after scaling a record peak of $4,642.72 on Wednesday.

U.S. gold futures GCcv1 for February delivery edged 0.3% lower to $4,608.90.

"The downward move (in gold) began predominantly when there was some ... (lowering of) the odds of some kind of intervention by the United States in the social unrest in Iran ... (and) we're seeing data come through from the U.S., it shows that there's not an urgency to cut interest rates," said Kyle Rodda, an analyst at Capital.com.

The dollar was poised for a third weekly gain after data from the U.S. Labor Department showed weekly initial jobless claims dropped 9,000 to a seasonally adjusted 198,000, below the 215,000 expected by a Reuters poll of economists. USD/

A firmer dollar makes greenback-priced metals more expensive for overseas buyers. Gold, a non-yielding asset, also benefits from low rates because they reduce the opportunity cost of holding it.

People inside Iran, reached by Reuters on Wednesday and Thursday, said protests appeared to have abated since Monday while U.S. President Donald Trump also struck a softer tone regarding military intervention against the country.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings nudged 0.05% higher to 1,074.80 tons on Thursday, its highest in over 3-1/2 years. GOL/ETF

Meanwhile, gold demand in India stayed muted this week as prices hit record highs again, taking the shine off retail buying, while bullion traded at a premium in China as demand remained steady ahead of the Lunar New Year. GOL/AS

Silver has turned into the most crowded commodity trade in the market, according to a report by Vanda Research on Thursday, as individual investors have been snapping up silver at an extraordinary pace.

Spot silver XAG= shed 1.8% to $90.66 per ounce, although it was headed for a weekly gain of over 13% after hitting an all-time high of $93.57 in the previous session.

Spot platinum XPT= dropped 2.1% to $2,358.95 per ounce, while palladium XPD= lost 2.9% to $1,748.50 per ounce, after hitting a more than one-week low earlier.