(Updates prices, adds details)
* Stronger equities limiting gold's gain - analysts
* Fed to release minutes from its Nov. 7-8 policy meeting
* Platinum off seven-week lows hit on WednesdayBy Swati VermaBENGALURU, Nov 29 (Reuters) - Gold rose on Thursday afterFederal Reserve Chair Jerome Powell's comments boostedperceptions the central bank would go slow on interest ratehikes next year, while palladium was trading at record levelsdue to a shortage of supply.Spot gold gained 0.5 percent to $1,226.91 per ounceat 1305 GMT. U.S. gold futures were up 0.2 percent at$1,226.50 per ounce."The hint from the Fed that they are closer to ending thecurrent rate hike cycle caught the markets somewhat by surprise.We saw a good lift up in the gold price close to the highs we'veseen over the past few weeks," Mitsubishi analyst JonathanButler said."Treasury yields and the dollar dropped back, and that wasquite supportive of gold," he said.Gold tends to gain when rate hike expectations recedebecause lower rates reduce the opportunity cost of holdingnon-yielding bullion. Lower interest rates also tend to weigh onU.S. yields and the dollar, in which gold is priced.Gold prices jumped as much as 1 percent after Powell'sspeech on Wednesday, recovering from a two-week low of $1,210.65hit earlier.
But gains in the precious metal were limited as Powell'sdovish tone helped revive risk appetite, driving world stocks totheir highest in more than two weeks, while the dollar and bondyields fell. Powell said the central bank's policy rate is now "justbelow" estimates of a level that neither brakes nor boosts ahealthy U.S. economy. "Gold was revitalised by Powell's speech and his dovish tone... Despite this move, we are still in a lateral phase. We couldhave a first positive signal if bullion surpasses $1,235, pavingthe way for further rallies," ActivTrades chief analyst CarloAlberto De Casa wrote in a note.Investors are now awaiting the release of the minutes of theU.S. central bank's Nov. 7-8 policy meeting at 1900 GMT forfurther clues on the Fed's monetary tightening path.In addition to that they are awaiting the G20 summit inBuenos Aires later this week, where U.S. President Donald Trumpand Chinese President Xi Jinping are due to hold trade talks.Palladium fell 0.6 percent to $1,176.90 per ounce,after earlier hitting a record high of $1,186.50."This is a very fundamental story of demand outstripping thesupply. It's been six or seven years of sustained marketdeficit, which has kept the market exceedingly tight,"Mitsubishi's Butler said."As we see it strive towards new highs right now, there isclearly some potential for a short-term pull back andprofit-taking from here," he said.Spot silver was up 0.1 percent to $14.33 per ounce.Platinum rose 0.5 percent to $825.20 per ounce afterfalling to a seven-week low of $809.50 on Wednesday. (Reporting by Swati Verma in BengaluruEditing by Edmund Blair and Adrian Croft)
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