PRECIOUS-Gold rises on stronger Fed rate cut bets, weaker dollar

By Pablo Sinha

Nov 24 (Reuters) - Gold prices rose on Monday, supported by growing expectations of a Federal Reserve interest rate cut next month and a weaker dollar.

Spot gold XAU= was up 0.6% at $4,091.45 per ounce, as of 10:53 a.m. EST (1553 GMT). U.S. gold futures GCcv1 for December delivery rose 0.3% to $4,089.80 per ounce.

The dollar index .DXY inched lower, making dollar-priced bullion more affordable for holders of other currencies. USD/

"The market is increasingly getting convinced that the U.S. Federal Reserve is on track to cut interest rates in December," said Bart Melek, head of commodity strategies at TD Securities.

"A combination of lower rate (expectations) and a weaker U.S. dollar has helped gold in this environment," Melek added.

New York Fed President John Williams said on Friday that U.S. interest rates could fall "in the near term" without putting the Fed's inflation goal at risk, while helping guard against a slide in the job market.

Bets of a rate cut next month stand at 79%, the CME FedWatch tool showed. FEDWATCH

Gold, a non-yielding asset, tends to do well in low-interest-rate environments, and during geopolitical instability.

Investors are looking out for key economic data that was delayed due to the government shutdown, including U.S. retail sales, jobless claims and producer price figures due later this week.

Meanwhile, the U.S. and Ukraine continued talks on Monday to craft an acceptable plan to end Russia's war in Ukraine, after agreeing to revise an earlier U.S. proposal that many viewed as overly favorable to Moscow.

"With the Fed debate taking more headlines and geopolitical swings, especially vis-à-vis Ukraine, (gold) is still likely to catch a bid but in our view, it remains range bound between $4,000 and $4,100," Rhona O'Connell, an analyst at StoneX, said in a note.

Spot silver XAG= added 0.8% to $50.41 per ounce and platinum XPT= rose 2.1% to $1,542.75, while palladium XPD= rose 1.3% to $1,392.36.