* ECB meeting Thursday, Fed next week
* Fundamental backdrop still broadly gold supportive
-analyst
* Gold set to snap four-day losing streak
* Palladium hits two-month high
(Updates prices)
By Brijesh Patel
Sept 11 (Reuters) - Gold rose on Wednesday, supported by
lingering concerns over the global economy and U.S.-China trade
tensions, but still held close to a four-week low touched last
session amid a broader uptick in risk-sentiment ahead of major
central bank meetings.
Spot gold XAU= was up 0.5% at $1,492.50 per ounce as of
1246 GMT. Prices fell to their lowest since Aug. 13 at $1,483.90
in the previous session.
U.S. gold futures GCv1 edged 0.1% higher to $1,500.50 an
ounce.
"Prices are up very marginally, gold is still under
pressure. We are at a month low around the $1,490 level because
of improvement in risk appetite," Capital Economics analyst Ross
Strachan said.
"The fact that we are at the bottom end of the range over
the past month or so is attracting some interest, but we are
also seeing partial recovery in bond yields in recent days,
which is a bearish factor for gold in the short term," Ross
added.
Bond yields climbed and world stocks rose for a sixth
straight day, ahead of monetary policy decisions by the European
Central Bank 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.
"The overall fundamental backdrop is probably still broadly
gold-supportive considering the main sources of risk aversion
remain unresolved," said Ilya Spivak, senior currency strategist
at DailyFx.
"Both Brexit and the U.S.-China trade war are ongoing
concerns, as is the broader slowdown in global growth. That
probably encourages central banks to remain dovish, weighing on
yields and boosting gold."
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 was up 0.2% on Wednesday
against a basket of major currencies. USD/
On the trade front, a senior White House adviser on Tuesday
played down expectations for the next rounds of U.S.-China trade
talks, urging investors, businesses and the public to be patient
about resolving 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. Among other precious metals, silver XAG= gained 0.6% to
$18.11 per ounce, having hit a two-week low of $17.75 in the
previous session.
Palladium XPD= climbed 1.2% to $1,579.89 an ounce, after
hitting its highest since July 11 at $1,585. Platinum XPT=
rose 1.1% to $940.50.