Aug 1 (Reuters) - Gold prices slipped to a two-week low on Thursday after the U.S. Federal Reserve delivered a 25-basis-point rate cut as expected but ruled out a lengthy easing cycle, sending the dollar to a two-year peak.
FUNDAMENTALS
* Spot gold XAU= was down 0.4% at $1,407.91 per ounce as of 0102 GMT, after falling to its lowest since July 17 at $1,405.50.
* U.S. gold futures GCv1 dropped 1.3% to $1,419 an ounce.
* Policymakers moved the U.S. central bank's benchmark overnight lending rate to a target range of 2.00% to 2.25%, citing concerns about the global economy and muted U.S. inflation.
* However, Fed Chair Jerome Powell, speaking in a news conference after the release of the central bank's statement, characterised Wednesday's rate cut as "a mid-cycle adjustment to policy", a sign to markets that further sharp cuts were not imminent. The dollar index .DXY jumped to a two-year high after Powell signaled the move was not the start of a rate-cutting cycle. USD/
* U.S. Treasuries reacted to Powell's remarks by flattening the yield curve as the front-end of the market US2YT=RR scaled back on prior expectations for at least a 100 basis points of easing in the near-term. US/
* Asian shares fell to six-week lows on Thursday. MKTS/GLOB
* U.S. and Chinese negotiators ended a brief round of trade talks on Wednesday with little sign of progress and agreed to meet again in September, prolonging an uneasy truce in a year-long trade war between the world's two largest economies. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.18% to 823.42 tonnes on Wednesday from 824.89 tonnes on Tuesday. GOL/ETF
* The U.S. Mint sold 5,500 ounces of American Eagle gold coins in July, up 10% from the previous month, according to the latest data. AHEAD(GMT)
* 0145
China
Caixin Mfg PMI Final
July
* 1100
UK
BOE Bank Rate
Aug
* 1230
US
Initial Jobless Claims Weekly
* 1345
US
Markit Mfg PMI Final
July
* 1400
US
ISM Manufacturing PMI
July