(Updates prices)

* Trump says 'not thrilled' with Fed for raising rates

* Record net shorts in COMEX gold contracts

* Markets keep eye on trade war talks and Jackson Hole thisweek

* GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl

By Zandi Shabalala

LONDON, Aug 21 (Reuters) - Gold steadied after touching aone-week high on Tuesday as the dollar weakened after U.SPresident Donald Trump criticised the Federal Reserve forraising interest rates.

A weaker dollar generally boosts the price ofdollar-denominated gold.

Spot gold XAU= was slightly firmer at $1,190.68 an ounceby 1411 GMT, after touching $1,196.27 earlier, the highest sinceAug. 14. The precious metal was gaining for the third straightsession.

U.S. gold futures GCcv1 climbed 0.2 percent to $1,191.30an ounce.

"Trump's noises are helping gold demand at the margins butthe root of that is largely through the dollar easing," said ETFSecurities analyst Nitesh Shah.

Trump also said in the interview with Reuters that the U.S.central bank should do more to help him to boost the economy. urn:newsml:reuters.com:*:nL2N1VB18U

Trump made his first departure from a tradition of Americanpresidents rarely criticising the Fed in July when he condemnedthe U.S. central bank's monetary policy tightening.

Although Trump's comments helped gold rise, Julius Baeranalyst Carsten Menke said they would not fundamentally changethe outlook for bullion or monetary policy in the United States.

"In the end what determines the outlook for U.S. monetarypolicy is the health of the U.S economy," he said.

Gold is highly sensitive to rising U.S. rates as itincreases the opportunity cost of holding non-yielding metalwhile boosting the dollar.

The U.S. central bank has raised interest rates twice thisyear and is targeting two more hikes, with the next one seen inSeptember. However, Atlanta Fed President Raphael Bostic said onMonday he was maintaining his expectation for only one moreinterest rate hike this year. urn:newsml:reuters.com:*:nL2N1VB0WX

Meanwhile, hedge funds and money managers increased theirnet short position in COMEX gold contracts for the sixthstraight week to another record in the week to Aug. 14, U.S.Commodity Futures Trading Commission data showed. urn:newsml:reuters.com:*:nL1N1V81AA

Resistance for gold sits at $1,200.70, the 38.2 percentFibonacci retracement level of the July high to August lowrange, while support is at $1,146.20, which is the January 2017low, ScotiaMocatta said in a note.

Meanwhile, investors looked ahead to the release of theFed's August policy meeting minutes on Wednesday and the bank'sannual symposium at Jackson Hole, Wyoming, later this week.

Markets were also focused on a U.S.-China trade meeting thisweek, but Trump said on Monday he did not expect much progressfrom talks with Beijing. urn:newsml:reuters.com:*:nL2N1VB1A0

Elsewhere, platinum XPT= rose 0.1 percent to $794.60 anounce, having touched its highest in a week. Spot silver XAG= climbed 0.3 percent to $14.79 an ounce and palladium XPD= edged up 0.4 percent to $914.50 an ounce.

(Additional reporting by Apeksha Nair and Sumita Layek inBengaluru; Editing by Louise Heavens and Mark Potter) ((zandi.shabalala@tr.com; +44 207 542 5937; Reuters Messaging:zandi.shabalala.thomsonreuters.com@reuters.net))