* Break above $1,515 could prompt further gold gains-analyst
* Palladium on course for third straight monthly gain (Updates prices)By Karthika Suresh NamboothiriOct 31 (Reuters) - Gold rose on Thursday as the dollar cameunder pressure after the U.S. Federal Reserve cut interest rateswhile uncertainty surrounding a U.S.-China trade deal bolsteredthe metal's appeal as a safe-haven investment.Prices also got a further boost after U.S. weekly joblessclaims rose more than expected last week. Spot gold climbed 0.9% to $1,507.98 an ounce by 1258GMT, having earlier risen to a nearly one-week high of $1509.80.Prices were set for a monthly gain of more than 2%.U.S. gold futures were up 0.9% at $1,510.40.The U.S. central bank on Wednesday cut interest rates forthe third time this year to help to sustain U.S. growth despitea slowdown in other parts of the world. "While the central bank signalled a pause in further cutsfor now, it also seemed to pre-commit to keep rates low for theforeseeable future," said Ilya Spivak, a senior currencystrategist at DailyFx, adding that a resulting dip in U.S.Treasury bond yields and the dollar were helping gold.The U.S. dollar fell to a more than one-week lowagainst leading rivals.Gold is highly sensitive to any reduction in interest rates,which decreases the opportunity cost of holding non-yieldingbullion. Rate cuts also weigh on the dollar, in which gold ispriced.Uncertainties on the trade front also supported bullion,with the cancellation of an Asia-Pacific economic cooperationsummit in Chile next month, at which the United States and Chinawere expected to sign an interim deal to ease hostilities intheir long-running trade war."China said that, most probably, a long-term trade deal isnot really possible with Trump; so all that is really helpinggold prices higher," said Afshin Nabavi, senior vice presidentat precious metals trader MKS SA.
"Underlying momentum is still positive for gold. For pricesto accelerate, we need to break above $1,515, and if that isdone, we should be able to get more fresh blood coming into themarket."However, news that Beijing could remove extra tariffsimposed since last year on U.S. farm products fanned hopes thata trade deal remains possible. Elsewhere, palladium was down 0.6% at $1,794.47 anounce, having hit a record high of $1,824.50 on Wednesday. Theautocatalyst metal was set for a third straight monthly gain, up7% in October alone."There is so much demand but not enough supply, that's why alot of backwardation is still continuing and for the time beingit looks like $1,900 is on the cards," Nabavi said.Silver rose 1.1% to $18.06 an ounce while platinum firmed by 0.9% to $933.87, with both metals set formonthly gains. (Reporting by Karthika Suresh Namboothiri, Eileen Soreng andSumita Layek in BengaluruEditing by David Goodman)
0997 (If within U.S. call 651-848-5832); Reuters Messaging:karthikasuresh.namboothiri.thomsonreuters.com@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.