* Investors await ECB policy meeting on Thursday
* Spot gold expected to fall to $1,453 per ounce -techs
* Gold could breach $2,000/oz in the next year or two -Citi
* Holdings of SPDR Gold Trust fall 0.8% on Monday (Updates prices)
Sept 10 (Reuters) - Gold dropped to a near one-month low on Tuesday to hold below the key $1,500 pivot as the dollar strengthened and appetite for riskier assets improved on rising hopes of global economic stimulus.
Spot gold was down 0.3% at $1,493.80 per ounce as of 1239 GMT, after hitting its lowest level since Aug. 13, at $1,486, earlier in the session.
U.S. gold futures slipped 0.6% to $1,501.80 per ounce.
“We’ve had quite a broad improvement in risk appetite - the U.S. stock markets are now little shy of record highs - that is taking some of the edge off gold,” OANDA senior market analyst Craig Erlam said, adding a stronger dollar was also pressuring the metal.
Bullion prices have shed more than 4%, or more than $60, in less than a week, mainly hurt by a broader uptick in equity markets.
Also, the dollar rose 0.2% on Tuesday, making gold more expensive for investors holding other currencies.
“However, gold prices have primarily been supported by the central bank stimulus and the expectation is that we are going to see plenty more (interest rate cuts). So, from that perspective, we’re still seeing gold at these higher levels,” Erlam added.
The U.S. Federal Reserve is widely expected to cut interest rates by a quarter percentage point at its mid-September meeting, while the European Central Bank is likely to reduce deposit rates for the first time since 2016 later this week.
Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
“We now expect gold prices to trade stronger for longer, possibly breaching $2,000/oz and posting new cyclical highs at some point in the next year or two,” Citi bank analysts wrote in a note.
On the technical front, spot gold is expected to fall to $1,453, as it has cleared a support at $1,497 per ounce, said Reuters technical analyst Wang Tao.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.8% to 882.42 tonnes on Monday.
Among other precious metals, platinum dropped 1% to $936.70 per ounce, after nearing the $1,000 mark last week.
“Platinum has rallied the past two weeks as investors looked for ‘cheaper’ haven assets. While consolidation is likely in the near term, we remain bullish platinum over the next 12 months,” Citi said.
Silver eased 0.2% to $17.93 per ounce, while palladium rose 0.7% to $1,555. (Reporting by Brijesh Patel in Bengaluru; Editing by Pravin Char, Louise Heavens and Saumyadeb Chakrabarty)
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