PRECIOUS-Gold holds gains as dollar retreats

* Spot gold may test resistance at $1,235/oz- technicals
    * Dollar index slips, but hovers near its highest since
    * SPDR Gold holdings down 0.16 percent

 (Adds comments, updates prices)
    By Apeksha Nair
    Nov 16 (Reuters) - Gold prices on Wednesday held gains made
in the previous session as the U.S. dollar weakened, but lacked
impetus to push higher on increased odds of an interest rate
hike by the Federal Reserve.
    Spot gold was up 0.14 percent at $1,229.36 an ounce
at 0610 GMT, after rising 0.67 percent in the previous session.
    U.S. gold futures rose 0.41 percent to $1,229.50.   
    "At this moment there is some kind of rebound but $1,230
should be the immediate resistance level that it should not
cross with a very high momentum," said Mark To, head of research
at Hong Kong's Wing Fung Financial Group. 
    "$1,215 to $1,250 should be the trading range just to allow
some time for people to think and reflect on the possibilities
of policy options for the President-elect."
    Trump's election to the U.S. presidency sent bond yields
surging to 2016 highs this week, pushing the U.S. dollar to an
11-month peak against a basket of major currencies on Tuesday,
as investors bet his administration's policies would stoke
    On Wednesday, the dollar index, which measures the
greenback against a basket of major currencies, slipped back
0.26 percent at 99.965.
    "A slightly weaker U.S. dollar also helped improve investor
sentiment," ANZ analysts said in a note.
    However, the dollar still held near its 11-month high hit,
though, after upbeat U.S. data gave the greenback fresh impetus.
    Stronger-than-expected U.S. retail sales data in October
pointed to sustained economic strength that could allow the
Federal Reserve to raise interest rates next month. 
    Fed Governor Daniel Tarullo on Tuesday said Trump's election
already may be pushing up interest rates and tightening
financial markets, something the Fed will have to monitor as it
decides how quickly to tighten monetary policy. 
    "With Fed officials' recent comments, talk of a rate rise
will hardly inspire gold to go higher," said James Steel, chief
metals analyst for HSBC Securities.        
    Gold is highly sensitive to interest rates. 
    Spot gold may test a resistance at $1,235 per ounce,
a break above which could lead to a further gain to the next
resistance at $1,249, according to Reuters technical analyst
Wang Tao. 
    SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.16 percent to
927.45 tonnes on Tuesday from 928.93 tonnes on Monday. 
    Among other precious metals, silver was up 0.4
percent at $17.14 an ounce, and platinum rose 0.27
percent to $937.80.
    Palladium was down 0.3 percent at $703.80, after
touching its best since Oct. 4 at $711.70 earlier in the day.

 (Reporting by Apeksha Nair in BENGALURU; Editing by Tom Hogue
and Amrutha Gayathri)