* Spot gold faces resistance at $1,352 per ounce -technicals
* Silver off over 3-week highs marked Wednesday
* Platinum, palladium off 2-week highs hit prior session
* SPDR Gold holdings down slightly on Wednesday
* European Central Bank policy meeting outcome due 1145 GMT
(Recasts on price rise, adds comment)
By Sethuraman N R
Sept 8 Gold edged higher on Thursday on a weaker
dollar, with investors looking to the outcome of a European
Central Bank policy meeting later in the day for signs of
The euro zone economy is widely expected to need more
stimulus from the ECB, but it may not come at Thursday's
"There are just not enough (assets) for the ECB to buy. If
we see more buying, it will give a fillip to gold," said Jeffrey
Halley, business development and market strategist with OANDA
"As long as the dollar remains weak, we can see gold test
$1,350 and make its way up to $1,375-80 levels," he said.
Spot gold was up 0.2 percent at $1,347.01 an ounce by
U.S. gold futures rose 0.2 percent to $1,351.70
"While weaker-than-expected U.S. economic data over the past
week point to diminished market-expected probability of a rate
hike in September, we believe that the outlook for gold price
movements is likely to be mildly bearish over the rest of 2016,"
said NAB analyst Vyanne Lai.
Several U.S. Federal Reserve officials have made hawkish
comments in the past couple of days, making a push for rate
Rising U.S. interest rates increase the opportunity cost of
holding non-yielding bullion and boost the dollar, in which gold
"In the absence of bullish factors, gold tends to recede
rather than hold steady. This may be the case now, and we may
see further profit-taking near term," HSBC analyst James Steel
"The next rate rise should put a near-term floor on gold
prices. Also bond yields remain low, another supportive factor.
That said, gold looks to be on the defensive, at least near
Spot gold faces resistance at $1,352 per ounce, it may
either hover below this level or retrace to support at $1,327,
according to Reuters technical analyst Wang Tao.
The dollar index, which measures the greenback
against a basket of currencies, was down about 0.1 percent at
A stronger greenback makes dollar-denominated gold more
expensive for holders of other currencies.
Holdings of SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, fell 0.03 percent to 951.81
tonnes on Wednesday.
Spot silver climbed 0.6 percent at $19.87. It touched
its highest in over three weeks in the previous session.
Platinum rose 0.6 percent to $1090.95, after hitting
a two-week peak on Wednesday. Palladium was up 1 percent
at $694.30. It touched an over-two week high in the prior
(Reporting By Nallur Sethuraman in Bengaluru; Editing by
Richard Pullin and Joseph Radford)