* Spot gold down for fourth straight session
* Spot gold may drop to $1,316/oz - technicals
* Minutes of Fed's Jan meeting due at 1900 GMT
* Dollar continues to recover, hits 1-week high
(Adds comments, updates prices) Feb 21 (Reuters) - Gold prices fell further on Wednesday and hit a one-week low as the dollar steadied after a recovery from last week's three-year low, while investors awaited the minutes of the U.S. Federal Reserve's last policy meeting for clues on the pace of interest rate hikes this year.
Spot gold had slipped by 0.2 percent to $1,326.37 an
ounce by 0353 GMT and was down for a fourth straight session. Earlier in the day, prices touched the lowest since Feb. 14 at $1,325.31 an ounce.
U.S. gold futures were down 0.2 percent at $1,328.5
The dollar index , which measures the greenback
against a basket of currencies, was up 0.1 percent at 89.828, after hitting a one-week high of 89.857. It hit a three-year low of 88.253 on Feb. 16. "Gold is tracking the movement in dollar... The absence of Chinese buyers from the market is further pressurizing the yellow metal's prices," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. Investors are looking forward to the minutes of the Fed's Jan. 30-31 policy meeting for any signs of a hawkish tone. "A quicker and steeper slope of interest rate normalization offers the most prominent near-term threat to gold prices as this outcome will send the U.S. dollar surging," said Stephen Innes, APAC trading head at OANDA. Spot gold may drop to $1,316 per ounce as it has broken a support at $1,335, according to Reuters technical analyst Wang Tao. Treasury yields rose overnight with the benchmark 10-year
yield crawling back to near a four-year peak as
investors made room for this week's $258 billion deluge of new government debt. Treasury yields have risen in the wake of increased government borrowing. The U.S. Treasury Department has issued more debt in anticipation of a higher deficit from last year's major tax overhaul and a budget deal that will increase federal spending over the next two years. Higher yields on bonds make gold a less attractive investment because it pays no interest.
Meanwhile, holdings at the SPDR Gold Trust , the
world's largest gold-backed exchange-traded fund, rose 0.39 percent to 827.79 tonnes on Tuesday from 824.54 tonnes on Friday.
Among other precious metals, silver slipped 0.4 percent to $16.39 an ounce, palladium declined 0.2 percent to $1,031.50, and platinum dipped 0.3 percent to
(Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu)