Gold rises on growth risks concerns as spotlight turns to ECB
By Brijesh Patel
Sept 12 (Reuters) - Gold rose on Thursday, supported by lingering concerns for global growth, although an uptick in financial markets on hopes of a thaw in U.S.-China trade tensions kept its gains in check.
Spot gold XAU= was up 0.5% at $1,504.16 per ounce as of 0946 GMT. U.S. gold futures GCcv1 rose 0.6% to $1,512.
"We have the ECB (European Central Bank) meeting coming up later in the day and there are growing concerns they may not be able to deliver what the market is looking for in terms of economic boost; in that case it will provide a bid to gold," Saxo Bank commodity strategist Ole Hansen said.
"The underlying demand continues to remain strong for gold, there is a sense in the market that traders don't want to miss out on any renewed rally."
Investors are looking to the ECB meeting to see how far policymakers will go to support a flagging economy, given the risks posed by Britain's planned exit from the European Union.
The ECB is set to announce its rate decision at 1145 GMT, followed by the central bank's President Mario Draghi's news conference at 1230 GMT.
Markets are also awaiting consumer price index (CPI) data from the United States for August, which is expected to accelerate by merely 0.1%, compared with 0.3% in July, according to a Reuters poll, amid hopes of an interest rate cut from the U.S. Federal Reserve at its meeting next week.
Meanwhile, the United States on Wednesday agreed to delay increasing tariffs on $250 billion worth of Chinese imports to Oct. 15 from Oct. 1 "as a gesture of good will".
Positive signs on the trade front lifted risk sentiment, with world stocks advancing to their highest in six weeks. MKTS/GLOB
"The risk-on tone on the back of positive trade news has done little to dent interest in gold," MKS PAMP said in a note.
"However, the metal still trades sub $1,500 as ETF out-flows look to have dried up for the time being following recent declines to holdings."
Holdings of the SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund (ETF), have fallen nearly 2% so far this month. GOL/ETF
Elsewhere, silver XAG= gained 0.8% to $18.23 per ounce, and platinum XPT= jumped 1% to $953.80.
Palladium XPD= climbed 1.7% to $1,598.31 after hitting a two month high of $1,600.16 earlier in the session.
(Reporting by Brijesh Patel in Bengaluru; Editing by Alexander Smith )
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