* Spot gold expected to test resistance at $1,307-technicals
* SPDR gold holdings fall to near Oct. 9 levels (Updates prices, adds detail)
By Brijesh Patel
Spot gold XAU= was down 0.4% at $1,291.47 an ounce at 1301GMT and U.S. gold futures GCcv1 slipped 0.5% to $1,291.70.
"We have seen repeated attempts in the last few days to riseabove $1,300 and it (gold) appears to be facing some kind ofbarrier. There is clearly some selling when it hits that level,"said Capital Economics analyst Ross Strachan.
Adding further pressure to bullion, the dollar index .DXY rose after data showed U.S. homebuilding increased more thanexpected in April and unemployment benefits fell more thanexpected last week, pointing to sustained labour market strengththat should underpin the economy. USD/urn:newsml:reuters.com:*:nLNSGGEF41urn:newsml:reuters.com:*:nLNSGGEF42
European equities rose, erasing earlier losses, while theeuro gained in volatile trade as the threat of automotive tariffs were pushed back. MKTS/GLOB
"Gold seems to have reached a temporary detente at theselevels with momentum too weak to push it either way. Thegeopolitical premium appears to be baked into the price fornow," OANDA analyst Jeffrey Halley said in a note.
The latest move from Washington to blacklist Chinesetelecoms giant Huawei tempered hopes of a breakthrough in anescalating trade conflict that has rattled financial markets andcompounded fears of a slowdown in global growth after weakeconomic data from China. urn:newsml:reuters.com:*:nL2N22R0TCurn:newsml:reuters.com:*:nL2N22R16X
"The ongoing trade tensions between the two largesteconomies and an increasing potential for a more negative growthscenario should be supportive for gold," Capital Economics'Strachan added.
On the technical front, spot gold is expected to testresistance at $1,307, a break above which could lead to a gainto $1,322, said Reuters technical analyst Wang Tao. urn:newsml:reuters.com:*:nL4N22S0VM
Meanwhile, SPDR Gold TrustGLD , the world's largestgold-backed exchange-traded fund, said holdings fell 0.4% to733.23 tonnes on Wednesday. Holdings are now close to theirlowest levels since Oct. 9. GOL/ETF
Among other metals, silver XAG= was down 0.4 % at $14.74an ounce while platinum XPT= fell 0.2% to $843.65.
Palladium XPD= lost 1% to $1,331.30 and has slumped byabout 17 percent since the metal used in catalytic converters incar exhaust systems scaled a record peak of $1,620.53 in March.
"At the movement it (palladium) seems to be consolidatingafter a hefty decline," Strachan said. "The bigger picture forpalladium is still substantial weakness in autos demand." (Reporting by Brijesh Patel in BengaluruEditing by David Goodman) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 8485832, Outside U.S. +91 8067493865; Reuters Messaging:Brijesh.Patel1.firstname.lastname@example.org))