* Gold climbs to new three-month high
* Other precious metals track gold higher
* Dollar index near 3-1/2 week low
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Oct 14 (Reuters) - Gold extended gains to a
fourth straight session on Wednesday, hitting a fresh
three-month high, bolstered by a weaker dollar and comments from
Federal Reserve officials cautioning against a rate hike this
year.
Spot gold XAU= rose 0.3 percent to $1,172.40 an ounce by
0643 GMT, after earlier climbing to $1,174.40 - its highest
since July 6. Other precious metals were all tracking gold
higher.
Bullion has gotten a boost since the weak U.S. nonfarm
payrolls report earlier this month that prompted the market to
shift expectations of a U.S. rate hike to 2016 and sell the
dollar.
Weak Chinese data on Wednesday added to global growth
concerns, another factor investors believe could deter the Fed
from hiking rates this year.
Charts were also looking good for bullion, analysts said.
"The precious complex continues to look bid-ish and
participants should be prepared for both gold and silver to
break through their upcoming technical resistance points," said
James Gardiner, a trader at MKS Group.
The immediate resistance for gold was at $1,170-71, he said.
Analysts at ScotiaMocatta said a close for gold above $1,170
should see the metal go all the way to $1,192.
Helping gold's move higher was a sluggish dollar, which was
trading near its lowest in 3-1/2 weeks against a basket of major
currencies as further signs of weakness in China fanned
expectations that the Fed will have to wait longer before any
policy tightening. USD/
Consumer inflation in China cooled more than expected in
September while producer prices extended their slide to a 43rd
straight month, adding to concerns about deflationary pressures
in the world's second-largest economy.
The Fed refrained from hiking rates at its September
meeting, citing concerns about the global economy, although Fed
Chair Janet Yellen said later the central bank was on track to
raise rates this year.
However, Fed Governor Daniel Tarullo said on Tuesday the Fed
should not hike interest rates this year, in comments that
point to sharp divisions within the U.S. central bank over
America's readiness for higher rates.
Tarullo, who rarely comments in public on monetary policy,
is the second Fed governor this week to urge caution on the
timing of rate hikes.
Fed Governor Lael Brainard on Monday said the Fed should
hold off on rate hikes until it is clear that trouble in China
and other international risks will not push the U.S. recovery
off course.
PRICES AT 0643 GMT
Metal Last Change Pct chg
Spot gold 1172.4 4 0.34
Spot silver 15.99 0.1 0.63
Spot platinum 989.24 2.24 0.23
Spot palladium 691 11.5 1.69
Comex gold 1172.2 6.8 0.58
Comex silver 15.975 0.068 0.43
COMEX gold and silver contracts show the
most active months