* Markets await U.S. consumer prices, housing starts, industrial output due Tuesday
* Technical resistance for gold seen at $1,350
* Platinum recovers from near 3-wek lows hit early Tuesday (Updates prices)
By Sethuraman N R
Aug 16 (Reuters) - Gold rose for a second day on Tuesday as the dollar weakened on lower expectations of a U.S. Federal Reserve interest rate hike this year.
Spot gold XAU= was up about 0.7 percent at $1,348.86 an ounce at 0639 GMT. The metal rose 0.2 percent on Monday.
U.S. gold GCcv1 rose 0.5 percent to $1,354.70 an ounce.
"The gold market is in the balance of long and short buyers. Both sides are waiting for more economic data to determine the trend," said Jiang Shu, chief analyst at Shandong Gold Group.
"Most investors are not very aggressive as they are not certain about which road they should choose."
Markets will look to U.S. data later in the day including consumer prices, housing starts and industrial output for another chance to gauge the health of the economy. ECONUS
Spot gold may revisit its Aug. 12 low of $1,333.50 per ounce, as it could have completed a bounce from this level, Reuters technical analyst Wang Tao said.
"Initial resistance for gold is at the important $1,350 level, whilst first support comes in around $1,335-1,336," trading firm MKS Pamp said in a note.
Central bankers and governments must come up with new policies to buffer their economies against persistently low interest rates that threaten to make future recessions deeper and more difficult to avoid, San Francisco Fed President John Williams said. dollar hit a one-month low against the yen on Tuesday, staying on the defensive after recent U.S. economic data were seen likely to limit the prospects of a near-term Fed interest rate hike. USD/
The dollar index .DXY was down 0.6 percent to $95.091 against a basket of currencies.
A stronger dollar discourages gold buying by making the metal more expensive in other currencies.
Asian shares rose to one-year highs, expanding their gains this year to 10 percent, supported by a jump in oil prices and investor expectations of an extended phase of easy monetary policy around the globe. MKTS/GLOB
Soros Fund Management LLC sharply cut its shares in gold in the second quarter, while New York-based Paulson & Co, led by John Paulson, kept its stake in SPDR Gold Trust unchanged, U.S. Securities and Exchange Commission filings showed on Monday. XAG= was up 1.2 percent at $20.03 an ounce.
Platinum XPT= , which hit a near three-week low of $1,105.50 earlier in the session, was up 1.7 percent at $1,126.40.
Palladium XPD= was up about 0.5 percent at $697.20. It hit a three-week low of $679.72 on Monday.