* Platinum moves away from over 2-month lows hit Monday
* Palladium off near 8-week lows marked in previous session
(Adds comment, updates prices)
By Sethuraman N R
Sept 13 Gold edged higher on Tuesday after
comments by a top Federal Reserve official reduced prospects of
a U.S. interest rate hike next week.
The Fed should avoid removing support for the U.S. economy
too quickly, Board Governor Lael Brainard said on Monday in
comments that solidified the view the central bank would leave
rates unchanged next week.
"The comments balance hawkish views by other Fed officials
and gold is moving on that," said Yuichi Ikemizu, head of
commodity trading at Standard Bank in Tokyo.
"It is still the same story of a $1,300-$1,400 range for
gold. I don't think we are going to see any major move until the
Fed meeting next week."
Spot gold was up about 0.1 percent at $1,328.50 an
ounce at 0656 GMT.
U.S. gold futures were up 0.5 percent at $1,332.20
Traders trimmed their odds for a September rate hike to 15
percent from 24 percent on Friday, according to CME Group.
"As the market reduces the likelihood of a near-term rate
rise and if oil losses stabilize, gold prices should find a
bottom, at least in the run up to the FOMC," HSBC analyst James
Steel said in a note.
Asian stocks rose early on Tuesday, buoyed by an overnight
rally on the Wall Street.
Spot gold may end its current bounce around resistance at
$1,330 per ounce before resuming its downtrend, according to
Reuters technical analyst Wang Tao.
"We are now in the Federal Reserve blackout period leading
into next week's Fed meeting and it is looking increasingly
likely that we won't see the committee move on rates this
month," MKS PAMP Group Trader Sam Laughlin said.
"Gold should see support broadly between $1,320- $1,325,
while resistance sits toward $1,340."
Spot silver climbed 0.4 percent to $19.14 an ounce,
after hitting an over one-week low of $18.69 in the previous
Platinum slipped 0.4 percent at $1,049.35. It touched
its lowest in more than two months at $1,033.45 on Monday.
Palladium was trading marginally lower at $660.40. It
hit a low of $650.15 Monday, a level not seen since July 20.
(Reporting by Nallur Sethuraman and Swati Verma in Bengaluru;
Editing by Joseph Radford and Vyas Mohan)