* Fed meeting minutes echo rate hike expected soon
* Markets eye trade talks and Jackson Hole this week
* GRAPHIC-2018 asset returns: (Updates prices, headline; adds comment after Fed meetingminutes)By Renita D. Young and Zandi ShabalalaNEW YORK/LONDON, Aug 22 (Reuters) - Gold prices steadied onWednesday, as the dollar eased after minutes from the FederalReserve's August policy meeting reiterated an interest rate hikecould come soon, but geopolitical risks are apparent.U.S. central bankers discussed raising interest rates soonto counter excessive economic strength but also examined howglobal trade disputes could batter businesses and households,minutes of the Federal Reserve's last policy meeting showed onWednesday. The Fed has been raising rates gradually since 2015 andpolicymakers are now concerned the economy is so strong thatinflation could rise persistently above the central bank's 2percent target.Rising interest rates lift the opportunity cost of holdingnon-yielding metal while boosting the dollar, in which it ispriced."Gold got a little bit of a bounce off the initial minutes,but it's more of the current theme that we've been hearing allalong," said Bob Haberkorn, senior commodities strategist at RJOFutures.Spot gold was flat at $1,195.95 an ounce by 2:25 p.m.EDT (1825 GMT), after earlier hitting $1,201.51, its highestsince Aug. 13. U.S. gold futures for December deliverysettled up $3.30, or 0.3 percent, at $1,203.30 per ounce.
The dollar index, which measures the greenback against abasket of six major currencies , was weaker, after earlierfalling to 94.93, its lowest since Aug. 2. "I think this is a correction to refresh and determine whatthe next path is. Today, you're kind of trading in the middle,"said Rob Haworth, senior investment strategist for U.S. BankWealth Management.U.S. President Donald Trump's displeasure with risinginterest rates had weighed on the dollar ahead of the Fed'sminutes and its annual economic symposium in Jackson Hole,Wyoming, which will begin on Friday. Gold prices have slid more than 12 percent since hitting ahigh of $1,365.23 in April amid U.S. interest rate hikes and asoaring dollar.Markets also looked ahead to trade talks between Chinese andU.S. officials expected to begin later on Wednesday inWashington.Meanwhile, liquidations continued at SPDR Gold Trust ,the world's largest gold-backed exchange-traded fund. Net shorts in COMEX gold contracts rose to a record high inthe week ending Aug. 14, U.S. government data showed. Spot silver declined 0.2 percent at $14.71 an ounce,earlier hitting $14.88, a one-week high.Platinum slipped 0.4 percent at $790 per ounce, whilepalladium rose 1.3 percent to $927.75 per ounce, itshighest since Aug. 1. (Additional reporting by Nallur Sethuraman in Bengaluru;Editing by Dan Grebler and Chizu Nomiyama)
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