PRECIOUS-Gold dips as dollar rises; palladium falls back from near $2,000

 (New throughout, updates prices)
    * Palladium supply to remain tight -analyst
    * Dollar holds gains
    * Investors await Trump impeachment vote
    * GRAPHIC-2019 asset returns:

    By Karthika Suresh Namboothiri
    Dec 18 (Reuters) - Gold dipped on Wednesday, weighed down by
a firmer dollar which found support from mounting expectations
the U.S. Federal Reserve will not cut interest rates soon, while
palladium retreated from record highs.
    Spot gold        dipped 0.1% to $1,474.91 per ounce as of
2:07 p.m. ET (1907 GMT). U.S. gold futures        also inched
down 0.1% to settle at $1,478.70.
    "The strength of the dollar is weighing on gold, coupled
with the fact that the trade deal has removed the urge to get
into safe havens like gold or yen," said Edward Meir, analyst at
ED&F Man Capital Markets.
    "We are kind of watching the paint dry... Big and complex
issues are deferred and even the Phase 1 deal is not completely
nailed down yet."
    Data on Tuesday showed U.S. manufacturing output rebounded
more than expected in November, making it less likely that the
Fed would cut interest rates soon.           
    Gold is sensitive to rising interest rates, which lift the
opportunity cost of holding it, and boost the dollar, in which
the metal is priced.
    The U.S. currency        against a basket of others held
gains at 97.41.        
    Due to a lack of follow-through on the upside in gold,
investors had started modestly selling the metal, said Afshin
Nabavi, senior vice president at precious metals trader MKS SA,
adding a break of the $1,465-$1,495 range could attract fresh
    Gold, on track for its biggest annual gain since 2010, is
supported on the back of recessionary fears and as major central
banks around the world resort to monetary easing.
    The U.S. House of Representatives is due to vote later in
the day on whether to impeach President Donald Trump.
    Further support for bullion came from fresh fears of a
no-deal Brexit, analysts said. On Tuesday, Britain set a hard
deadline of December 2020 to reach a new trade deal with the
European Union, reviving fears of a chaotic exit from the bloc.
    Palladium        retreated from a near $2,000 record peak
hit on Tuesday, falling 1.5% to $1,925.48.
    "The (palladium) market is blowing off froth and is likely
to mark time towards year-end, but tightness in supply is
unlikely to be mitigated in the near future," INTL FCStone
analyst Rhona O'Connell said in a note.
    Among other precious metals, platinum        rose 0.7% to
$933.74 an ounce, and silver        fell 0.1% to $16.99.

 (Reporting by Karthika Suresh Namboothiri, Eileen Soreng and
Harshith Aranya in Bengaluru; Editing by David Gregorio)