Nov 21 (Reuters) - Gold prices rose on Tuesday,
supported by a weaker U.S. dollar as investors look forward to
minutes from Federal Reserve's latest meeting for more guidance
on its interest rate outlook.
FUNDAMENTALS
* Spot gold was up 0.3% at $1,983.81 per ounce, as of
0041 GMT. U.S. gold futures also gained 0.3% to
$1,985.70.
* The dollar languished near more than a 2-1/2-month
low against its rivals, as investors expect U.S. interest rates
to fall next year and see that as a signal to sell the greenback
in anticipation.
* A weaker dollar makes gold less expensive for other
currency holders.
* Minutes from the Fed's latest meeting are due at 1900 GMT
on Tuesday. Signs of slowing inflation in the United States and
weaker-than-expected jobless claims data last week boosted
expectations that the U.S. central bank was done raising
interest rates.
* Markets are widely expecting the Fed to leave rates
unchanged in the December meeting and currently pricing in a
greater than 50% chance of a rate cut of at least 25 basis
points by May, according to CME's FedWatch Tool.
* Lower U.S. interest rates put pressure on the dollar and
bond yields, increasing the appeal of non-yielding bullion.
* Benchmark U.S. 10-year Treasury yields were
hovering near two-month lows touched last week.
* Inflation is likely to remain "stubborn" and force the
Federal Reserve to keep interest rates elevated for longer than
investors anticipate, Richmond Fed president Thomas Barkin said.
* One U.S. recession gauge - the Conference Board's October
leading economic indicator - showed on Monday a decline of 0.8%,
its 19th straight monthly fall.
* Spot silver rose 0.5% to $23.52 per ounce, while
platinum was up 0.1% at $919.40. Palladium was
flat at $1,077.14 per ounce.
DATA/EVENTS (GMT)
1500 US Existing Home Sales Oct
1900 US Federal Open Market Committee issues minutes from
its Oct. 31 - Nov. 1 meeting
(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry
Jacob-Phillips)