* Gold reverses some of previous day's 1.4 percent slide
* GLD fund sees 4-tonne outflow, largest in nearly 6 weeks
* GRAPHIC: Asset returns-http://link.reuters.com/dub25t
(Updates prices; adds comment, second byline, NEW YORK
dateline)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, Sept 10 (Reuters) - Gold rose from
four-week lows on Thursday as European stocks snapped a
three-day run of gains, but traders remained cautious as they
awaited fresh clues on the timing of a U.S. rate hike.
The precious metal fell 1.4 percent on Wednesday, its
biggest one-day drop in nearly two months, as strength in stocks
and the dollar pushed prices through key chart levels to
$1,101.11 an ounce, the lowest since Aug. 11.
Prices could fall further ahead of the U.S. Federal Open
Market Committee (FOMC) meeting on Sept. 16-17, traders said.
Spot gold XAU= was up 0.5 percent at $1,110.65 an ounce at
2:40 p.m. EDT (1840 GMT), while U.S. gold futures GCv1 for
December delivery settled up 0.7 percent at $1,109.30 an ounce.
"It's very hard to work out what the gold market is pricing
in regarding the probability of a hike and what the outcome will
be if the FOMC surprises," ICBC Standard Bank strategist Tom
Kendall said.
"The one thing that we can say is that the market at this
time of year should be enjoying a bit of a seasonal boost,
particularly from the Indian subcontinent, and at the moment,
that market is very quiet."
Global equity markets outside the United States fell as
concerns about the economies of China and Japan cast a cloud
over the world growth picture, though Wall Street rose, due in
part to a rebound in oil prices. The U.S. dollar .DXY
softened. MKTS/GLOB USD/
Concerns over slowing growth in China and mixed economic
data have increased uncertainty about the timing of a U.S. rate
increase, which had been expected as early as this month.
Prices could head back towards July lows after bullion broke
through some key chart levels on Wednesday, technical analysts
at ScotiaMocatta said. The July low of $1,077 was the weakest
since February 2010.
"My concern is that $1,110 is now becoming a little bit of
resistance. If that's the case, $1,080-$1,070 are the downside
targets," said Eli Tesfaye, senior market strategist for
brokerage RJO Futures in Chicago.
"I just don't see a lot of bullish factors in this market
right now."
Investor interest in gold has been tepid. SPDR Gold Trust,
the world's largest gold-backed exchange-traded fund, said its
holdings fell 0.61 percent to 678.18 tonnes on Wednesday, the
biggest drop in nearly six weeks. GOL/ETF
Silver XAG= was up 0.4 percent at $14.67 an ounce,
palladium XPD= was up 1.7 percent at $589.25 an ounce, but
platinum XPT= fell 0.5 percent to $976 an ounce.