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PRECIOUS-Gold prices fall on dollar strength; Fed minutes in focus

       * May FOMC policy meeting minutes due at 1800 GMT
    * Gold prices set to snap five-session winning run

 (Recasts, adds comments, updates prices)
    By Eileen Soreng
    May 25 (Reuters) - Gold prices slipped on Wednesday,
pressured by a firmer dollar as investors look to minutes from
the U.S. Federal Reserve's May policy meeting due later in the
day for cues on its policy tightening path.
    Spot gold        fell 0.6% to $1,855.30 per ounce by 1007
GMT, on track to snap a five-day winning streak. U.S. gold
futures        dropped 0.6% to $1,854.80.
    The dollar        was up 0.4% after hitting its lowest level
in a month on Tuesday.
    "The dollar will probably once again reach towards those
maximums that it touched earlier in May because the FOMC minutes
will reveal that the Fed is committed to its current hawkish
stance and these are bad news for gold," said Ricardo
Evangelista, senior analyst at ActivTrades.
    The Federal Open Market Committee (FOMC) is expected to
release the minutes from its May 3-4 policy meeting at 1800 GMT.

    While markets expect 50-basis-point rate hikes over the next
several months, there are also concerns that aggressive policy
tightening could weigh on economic recovery.
    In an essay published on Tuesday, Atlanta Fed President
Raphael Bostic warned headlong rate hikes could create
"significant economic dislocation".
    Gold is highly sensitive to rising U.S. interest rates,
which increase the opportunity cost of holding non-yielding
bullion and also boosts the dollar, in which it is priced.
    "As we do not see the U.S. economy slipping into recession,
the recent revival of safe-haven demand should be temporary,
leaving little upside to prices," Julius Baer analyst Carsten
Menke said in a note, adding silver should continue moving in
gold's slipstream.
    Spot silver        fell 1.1% to $21.84 per ounce, platinum
       shed 1.2% to $942.55, and palladium        eased 0.3% to
$2,000.74.

 (Reporting by Eileen Soreng in Bengaluru; Editing by Emelia
Sithole-Matarise)

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