PRECIOUS-Gold edges up on rate cut bets, firmer equities limit upside

* Speculators raise bullish COMEX gold, silver bets- CFTC
* In short-term, gold unlikely to dip below $1,500/oz-
analyst
* Palladium jumps more than 1%

(Updates prices)
By Brijesh Patel
Sept 9 (Reuters) - Gold prices gained on Monday, crawling
away from a two-week low touched in the previous session,
supported by hopes of monetary policy easing by major central
banks although the metal's advance was capped by improved
appetite for riskier assets.
Spot gold XAU= was up 0.3% at $1,511.80 per ounce, as of
1151 GMT. The metal touched $1,502.50 on Friday, a level last
seen on Aug. 23.
U.S. gold futures GCv1 were up 0.3% at $1,519.60 an ounce.
"Gold has been retreating because of risk appetite returning
to the market, so the concerns (over U.S.-China trade ties and
global growth) seem to be subdued," Commerzbank analyst Eugen
Weinberg said, adding that monetary easing by central banks
could drive a rally in gold in the medium term.
"We're likely to see a pause in the upward tend, but the
trend is still intact."
Financial markets around the world rose on Monday, with
European stocks hovering near a one-month high, after data
showed a surprise rise in German exports and on firmer
expectations of fresh stimulus by the European Central Bank
later this week. MKTS/GLOB Risk sentiment was also lifted on Friday after China said it
would slash the amount of cash that banks must hold as reserves,
while U.S. Federal Reserve Chairman Jerome Powell said the
central bank would continue to "act as appropriate" to sustain
economic expansion. Powell's comments and a mixed U.S. employment report
bolstered expectations for a rate cut at the Fed's Sept. 17-18
policy meeting. "With the ECB and Fed primed to further ease monetary
conditions this month, it is unlikely gold will dip below
$1,500/oz in the short-term," Howie Lee, economist at OCBC Bank
said in a note.
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.
Meanwhile, the dollar .DXY eased 0.1% against a basket of
major currencies. USD/
Hedge funds and money managers hiked their bullish positions
in COMEX gold and silver contracts in the week to Sept. 3, the
U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
On the technical side, spot gold is expected to test a
support at $1,497 per ounce, a break below which could cause a
further fall to $1,453, according to Reuters technical analyst
Wang Tao.
Elsewhere, silver XAG= rose 0.4% to $18.23 per ounce.
However, the metal fell to a near two-week low of $17.89 earlier
in the session.
Palladium XPD= jumped 1.3% to $1,556.53 an ounce and
platinum XPT= gained 0.9% to $958.30.