* Gold trades near 200-day moving average
* Prices could see near-term upside -analysts
* Dollar index ticks lower
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Oct 21 (Reuters) - Gold retained overnight gains
on Wednesday, as a softer dollar increased the metal's appeal as
a hedge, with investors waiting for stronger clues on when the
Federal Reserve will raise U.S. rates.
Spot gold XAU= was little changed at $1,174.90 an ounce by
0643 GMT. The metal gained 0.5 percent in the previous session,
snapping a three-day losing streak.
Bullion gained as the euro rose against the dollar on
Tuesday, bolstered by solid regional economic data and comments
from European Central Bank (ECB) officials suggesting further
monetary easing may not be imminent. USD/
A weaker greenback makes dollar-denominated gold cheaper for
holders of other currencies, while also increasing its appeal as
a hedge. Sluggishness in equity markets also triggered some
safe-haven bids for gold. MKTS/GLOB
With gold now close to its 200-day moving average near
$1,175, some expect more gains though trading could be quiet
ahead of the ECB policy meeting on Thursday and Fed meeting next
week.
Bullion's rise above its 200-day moving-average "is a
technical sign, no doubt, suggesting some upside risk for gold,"
said OCBC analyst Barnabas Gan.
"(But) a potential higher interest rate environment, better
growth story into 2016, are strong fundamental drivers
underpinning a bear gold story going forward," Gan said.
Despite the overnight gains, gold was still trading below a
3-1/2-month high of $1,190.63 hit last week, held back by
uncertainty over the timing of the first U.S. rate hike in
nearly a decade.
Market expectations for a hike have shifted to next year in
recent weeks amid concerns about the global economy, although
some haven't completely ruled out a rate rise in December on
recent robust U.S. economic data.
Data on Tuesday showed U.S. housing starts rose solidly in
September on soaring demand for rental apartments, a sign that
the housing market continues to steadily improve. urn:newsml:reuters.com:*:nL1N12K0TJ
Investors will be closely monitoring U.S. data and comments
from Fed officials on monetary policy to gauge when the central
bank would raise rates. The Fed holds two more policy meetings
this year: next week and in December.
Gold prices are expected to slip to $1,159.88 by October
2016, delegates to the London Bullion Market Association's
annual gathering predicted on Tuesday. urn:newsml:reuters.com:*:nL8N12K2L
PRICES AT 0643 GMT
Metal Last Change Pct chg
Spot gold 1174.9 -0.8 -0.07
Spot silver 15.77 -0.11 -0.69
Spot platinum 1018.05 2.81 0.28
Spot palladium 687.2 -4.3 -0.62
Comex gold 1175 -2.5 -0.21
Comex silver 15.78 -0.137 -0.86
COMEX gold and silver contracts show the
most active months