PRECIOUS-Gold prices snap 4-day losing streak; focus on ECB meet


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    * Spot gold still targets $1,453/oz - technicals
    * Dollar steady as traders await Thursday's ECB meeting

 (Updates prices)
    By Eileen Soreng
    Sept 11 (Reuters) - Gold prices edged up on Wednesday,
snapping a four-day losing streak on technical buying, amid
expectations that the European Central Bank will dole out
stimulus and cut interest rates.
    Spot gold  XAU=  was up 0.3% at $1,490.27 per ounce, as of
0732 GMT. In the previous session, prices fell to their lowest
since Aug. 13 at $1,483.90. 
    U.S. gold futures  GCv1  were up 0.2% at $1,502.2 an ounce.
    "The ECB is expected to reduce further the interest rate
into negative territory... The meeting could serve as a
potential catalyst (for gold) and investors are already buying
into the rate cut expectations," said Margaret Yang Yan, a
market analyst at CMC Markets.
    Given that gold has had such a deep correction from its
recent peak, investors are buying on dips, Yan added. 
    Bullion prices have shed more than 4%, or over $60, since
scaling an over six-year peak of $1,557 on Sept. 4. 
    Risk sentiment got a lift ahead of monetary policy decisions
by the ECB on Thursday and the U.S. Federal Reserve next week,
with investors hoping for further easing amid a slowdown in
global growth.
    Market participants might be reluctant to commit to big
risk-on bets, which could nudge gold upwards amid
pre-positioning ahead of Thursday's event, said Ilya Spivak,
senior currency strategist, DailyFx.
    ECB policymakers are leaning toward a package that includes
a rate cut, a pledge to keep rates low for longer and
compensation for banks over the side-effects of negative rates,
five sources familiar with the discussion said last week.*:nL3N25V39I
    Fundamental backdrop is still broadly gold-supportive
considering the main sources of risk aversion remain unresolved,
Spivak added.
    "Both Brexit and the U.S.-China trade war are ongoing
concerns, as is the broader slowdown in global growth ... That
probably encourages central banks to remain dovish."
    Gold prices gained about 18%, or over $200, since hitting
year's low of $1,265.85 on May 2. 
    On the trade front, a senior White House adviser tamped down
expectations on Tuesday for the next rounds of U.S.-China trade
talks, urging investors, businesses and the public to be patient
about resolving the trade dispute.*:nL2N2611SF
    Spot gold still targets $1,453, as it has cleared a support
at $1,497 per ounce, according to Reuters technical analyst Wang
    Meanwhile, the dollar index was steady  .DXY , while Asian
stock markets held firm and bond yields rose on Wednesday.
    Among other precious metals, silver  XAG=  rose 0.5% to
$18.09 per ounce, having hit a two-week low of $17.75 in the
previous session. 
    Palladium  XPD=  was trading flat at $1,560.96 per ounce,
while platinum  XPT=  gained 0.7% to $936.90.

 (Reporting by Eileen Soreng in Bengaluru, Editing by Sherry
Jacob-Phillips and Rashmi Aich)
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