* Silver up slightly after hitting 2-1/2-month low
* Expectations of U.S. rate hike in December support dollar
* Federal Reserve minutes due later on Wednesday
(Updates throughout, changes dateline from Beijing)
By Clara Denina
LONDON, Nov 18 (Reuters) - Gold inched up on Wednesday as
the dollar fell and a gunfight in Paris hurt risk appetite, but
the market awaited minutes of a recent Federal Reserve meeting
which could reinforce bets of a rate hike next month, keeping
the metal close to an earlier near six-year low.
Spot gold was up 0.1 percent at $1,070.80 an ounce by
1053 GMT, after falling to $1,064.95 earlier, the lowest since
February 2010. U.S. gold futures for December delivery
were up $1.60 an ounce at $1,070.30.
Silver XAG= tracked gold, returning to positive territory
after dropping to a 2-1/2-month low, up 0.5 percent to $14.25 an
ounce, while platinum XPT= stood close to a seven-year low,
unchanged at $850.40 an ounce.
Bullion prices have fallen for 14 out of 16 sessions, under
pressure from prospects of the first U.S. interest rate hike in
nearly a decade in December. Higher rates would increase the
opportunity cost of holding the non-yielding metal.
Data on Tuesday showing U.S. consumer prices increased in
October fuelled further those expectations, while market odds
for a December hike moved from around 30 percent to 66 percent.
"Overall, financial markets are more or less positioned that
the Fed will hike this year, and the general trend for precious
metals is on the downside," ABN Amro analyst Georgette Boele
said.
Bullion managed to regain some lost ground as the dollar
eased 0.1 percent against a basket of currencies .DXY ,
retreating from an earlier seven-month high. European shares
fell, retreating from solid gains made in the previous session.
"We saw a pop in the last few days, but the knee-jerk
reaction didn't really last. The overriding factor has been the
rising dollar and the expectation of Fed hiking rates in
December," said ANZ analyst Victor Thianpiriya.
However, heightened security concerns in Europe after Friday
night's attacks in the French capital in which 129 people were
killed have slightly underpinned gold's safe-haven appeal.
Gunfire erupted in a north Paris suburb early on Wednesday
as special police forces launched an operation to catch suspects
believed to be behind last week's attacks.
Gold is typically seen as a refuge during times of
uncertainty. However, there has not been a substantial increase
in demand from retail investors in Europe, dealers said.