* Skittish investors shy away from dollar, stocks
* Fed minutes may offer more clues on rate-rise timing
* Coming up: U.S. CPI inflation data, 1230 GMT
(Updates throughout, changes dateline, previous MANILA)
By Jan Harvey
LONDON, Aug 19 (Reuters) - Gold rose on Wednesday as
cautious investors shied away from the dollar ahead of U.S.
inflation data and minutes of the Federal Reserve's last policy
meeting, awaiting fresh clues on whether interest rates will
rise next month.
Expectations that the Fed is on track to increase rates for
the first time in nearly a decade have helped push gold to
5-1/2-year lows this year. Rising rates lift the opportunity
cost of holding non-yielding bullion, while boosting the dollar.
However, mixed U.S. data and worries over global growth and
stability after China devalued the yuan last week have dampened
that speculation, allowing gold to climb back above $1,100 an
ounce.
Spot gold XAU= was up 0.4 percent at $1,122.00 at 0920
GMT, while U.S. gold futures GCv1 for December delivery were
up $4.30 an ounce at $1,121.20.
"The minutes today will be extremely relevant to gather
whether we're still on track for a September rate hike," Capital
Economics analyst Simona Gambarini said.
"There will be a lot of speculation around the timing of the
Fed's rate hike, so there will be lots of traders taking bets
ahead of that."
An analysis of the gold charts suggests the metal may have
potential to test the three-week high of $1,126 touched last
week, and then $1,137, according to analysts at ScotiaMocatta.
"We are cautiously bullish due to the (weakening) impact of
the firm dollar, which has been a negative weight on the metal,"
they said in a note.
The dollar was down a quarter of a percent against a basket
of currencies on Wednesday. The U.S. unit could benefit if data
due at 1230 GMT shows inflation is rising, analysts said. FRX/
Risk aversion weighed on stock markets, with European
equities sliding more than 1 percent after a drop in Asian
shares to a two-year low overnight. MKTS/GLOB
Spot platinum XPT= was up 0.3 percent at $993 an ounce and
palladium XPD= was down 0.7 percent at $592, both not far off
multi-year lows reached earlier this month.
Miner and commodities trader Glencore (LONDON:GLEN) posted a 29 percent
fall in first-half earnings on Wednesday, a day after it said it
was considering closing its Eland platinum mine in South Africa
due to falling prices.
"The mine produced about 35,000 ounces of platinum in 2014,
but was expected to expand significantly," Macquarie said in a
note.
Silver XAG= was up 0.5 percent at $14.94 an ounce.