PRECIOUS-Gold climbs on rate cut bets; firm equities cap gains

* Gold set to snap four-day losing streak
* ECB meeting on Thursday, Fed next week
* Stocks climb on trade hopes, bond yields rise ahead of ECB
* Palladium hits two-month high

(Updates prices)
By Asha Sistla
Sept 11 (Reuters) - Gold rose on Wednesday on expectations
of monetary policy easing by top central banks while global
growth risks continue to linger, although improved appetite for
riskier assets capped bullion's gains and kept it near a
four-week low.
Spot gold XAU= was up 0.6% to $1,494.90 per ounce at 1:39
p.m. EDT (1739 GMT). Prices fell to their lowest since Aug. 13
at $1,483.90 in the previous session in four-day losing streak.
U.S. gold futures GCv1 settled 0.3% higher at $1,503.20 an
ounce.
"If the European Central Bank (ECB) announces another cut or
more liquidity, it should boost precious metals and that's
what's given a positive tone for gold," said Chris Gaffney,
president of world markets at TIAA Bank.
"Low interest rates and slowing global growth are helping
gold stay well bid. It's just that to push it back to $1,500, we
need to see a rise in tensions and more expectations of lower
rates."
Bond yields extended their steady climb and Wall Street
gained, with investor focus turning to monetary policy decisions
by the ECB on Thursday, when the bank is widely expected to cut
interest rates. MKTS/GLOB US/
The ECB decision is likely to set the tone for upcoming
rate-setting decisions by the U.S. Federal Reserve and the Bank
of Japan next week.
While recent economic indicators might prompt a 25-basis
point interest rate reduction by the U.S. Fed, "a major cut of
50 bps (basis points) is unnecessary," said TIAA Bank's Gaffney.
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar, making
gold cheaper for investors holding other currencies.
Also on investors' radar was the U.S.-China trade ties, with
China exempting certain U.S. goods from retaliatory tariffs days
ahead of the October talks in an attempt to de-escalate the
protracted dispute. Spot gold is still targeting $1,453, as it has breached a
support at $1,497 per ounce, according to Reuters technical
analyst Wang Tao. "Weakening global growth, high risk aversion and low
interest rates should keep prices elevated, but they are
unlikely to provide a further boost given that they are, for the
most part, already accounted for," analysts at Capital Economics
wrote in a note.
Among other precious metals, silver XAG= was up 0.4% to
$18.09 per ounce, having hit a two-week low of $17.75 in the
previous session.
Palladium XPD= rose 0.3% to $1,565.87 an ounce, after
hitting its highest since July 11 at $1,590. Platinum XPT=
rose 0.9% to $938.58.