PRECIOUS-Gold gains luster as Fed rate cut bets, trade tensions boost demand

* Gold has risen over $60/oz since last Thursday
* Gold may consolidate after a strong run in a short time
-analyst
* Platinum off three-week highs

(Updates prices)
By Arijit Bose
June 6 (Reuters) - Gold prices rose on Thursday, as fears
about the impact of trade wars on the global economy, and rising
expectations for a U.S. interest rate cut enhanced the metal's
appeal.
Spot gold XAU= rose 0.7% to $1,338.65 per ounce as of 1:48
p.m. EDT (1748 GMT), while U.S. gold futures GCv1 settled up
0.7% at $1,342.70.
"Ongoing concerns regarding global economic growth is
supporting gold at the moment," said David Meger, director of
metals trading at High Ridge Futures, adding that U.S. trade
tussles with Mexico and China are taking a toll.
"Recent commentary by U.S. Federal Reserve officials that
they are at least willing to look at rate cuts if the data
warrants has also helped commodities across the board."
Having suspended a three-year monetary tightening campaign
earlier this year, the Fed is now widely expected to cut rates.
Chairman Jerome Powell said earlier this week the central
bank will closely monitor the economic impact of trade
conflicts, a deviation from his former pledge to be "patient"
before raising or lowering rates. U.S. President Donald Trump, who has consistently advocated
rate cuts, on Thursday issued fresh threats to hit China with
tariffs on "at least" another $300 billion of Chinese goods. He
also said, however, that he thought China and Mexico wanted to
make deals. Since Trump's threat last week to impose tariffs on Mexico,
gold has risen more than $63, and is only $11 away from its 2019
high, set in February.
"Gold has run a long way in its rally in a short span of
time, so I would not be surprised to see it consolidate," Saxo
Bank commodity strategist Ole Hansen said.
The market is eyeing data on U.S. non-farm payrolls due at
1230 GMT on Friday for clues on the trajectory of interest
rates.
"Wednesday's ADP national employment report for May showed
only 27,000 jobs added in the month. That anemic number has many
looking for a weaker number in Friday's jobs report," Jim
Wyckoff, senior analyst at Kitco, said in a note. Among other precious metals, silver XAG= rose 0.8% to
$14.91 per ounce, close to a more than one-month high of $15.04
set in the previous session.
Palladium XPD= climbed 1.6% to $1,349.51 an ounce, while
platinum XPT= inched down 0.1% to $798.50, away from a near
three-week high of $832.63 hit on Wednesday.