PRECIOUS-Gold ticks higher as subdued dollar, stocks boost appeal

    * Gold hovering near two-week highs 
    * Dollar hits fresh one-month low 
    * ECB's Lagarde sees rate at zero or slightly above by Sept.

 (Updates prices)
    By Ashitha Shivaprasad
    May 24 (Reuters) - Gold prices rose back towards the
previous day's two-week high on Tuesday, extending gains for a
fifth straight session, as a sell-off in the dollar and stock
markets bolstered bullion's safe-haven appeal.
    Spot gold        was up 0.3% at $1,858.39 per ounce as of
1207 GMT, after hitting its highest since May 9 on Monday at
$1,865.29. U.S. gold futures        rose 0.5% to $1,856.80. 
    The dollar is easing again and will continue to support gold
until there is some hawkish statement from the Federal Reserve,
said Quantitative Commodity Research analyst Peter Fertig.
    The greenback hit a one-month low as a broad sell-off in
stock markets failed to boost the U.S. currency's safe-haven
appeal. U.S. 10-year Treasury yields edged lower.              
    "Gold is in a great space at the moment, with almost all
supporting markers favouring the yellow metal," DailyFX analyst
Warren Venketas wrote in a note. 
    "U.S. 10-year TIPS has plateaued, giving added impetus to
gold upside because of the reduced cost of holding gold –
traditionally an inverse relationship."
     Gold is seen as a safe store of value during times of
economic crisis and a hedge against inflation, but rising
interest rates tend to weigh on non-yielding bullion.
    European Central Bank President Christine Lagarde said she
saw the ECB's deposit rate at zero or "slightly above" by
September end, implying an increase of at least 50 basis points
from its current level.              
    "Lagarde's comment came as a surprise to the market," added
Fertig. "In the long run for gold, increasing interest rates
faster than the market expected would imply that opportunity
costs for holding gold for investors will increase."
    Spot silver        rose 0.7% to $21.92 per ounce, while
platinum        eased 0.4% to $955.01. Palladium        gained
0.6% to $2,005.65. 

 (Reporting by Bharat Govind Gautam and Ashitha Shivaprasad in
Bengaluru; Editing by Rashmi Aich and Jan Harvey)