* Hopes of Brexit breakthrough boost pound, euro

* Trade disputes have strengthened dollar

* Gold down 1.5 pct from Aug. 28 high

* Technical indicators suggest prices could rise

(Updates prices)

By Peter Hobson

LONDON, Sept 5 (Reuters) - Gold prices rose on Wednesdayfrom an 11-day low in the previous session as a U.S. dollarrally faltered.

Gold has fallen 1.5 percent from an Aug. 28 high as currencyweakness in emerging markets and concerns over global tradedisputes strengthened the dollar, making bullion more expensivefor buyers with other currencies. .DXY

But the greenback slipped on Wednesday after a report thatBritain and Germany were prepared to drop a key sticking pointin Brexit negotiations boosted the pound and the euro. urn:newsml:reuters.com:*:nL3N1VR4IH FRX/

And with gold still close to a 1-1/2 year low of $1,159.96an ounce touched last month, there is little room for prices tofall, Julius Baer analyst Carsten Menke said.

"Gold is showing signs of bottoming," he said.

Spot gold XAU= was 0.5 percent higher at $1,196.51 at 1409GMT after falling to $1,189.20, the lowest since Aug. 24, onTuesday.

U.S. gold futures were up 0.3 percent at $1,202.30 an ounce,with the dollar down 0.3 percent against a basket of majorcurrencies .DXY .

Gold has tumbled more than 12 percent from a peak in Aprilas the dollar rose to 14-month highs and investors turnedagainst the metal.

Helping drive prices down, holdings of gold by exchangetraded funds have fallen by 8 percent, or 4.6 million ounces,since late May, while bets by hedge funds and money managers onlower prices on the Comex exchange exceeded bets on higherprices by the most on record last month. 3088691MNET urn:newsml:reuters.com:*:nL2N1VM1KS HLDTOTALL=XAU

Such negative positioning means speculators will struggle topush prices much lower, Menke said, though he added that withouta weakening of the dollar, gold would find it difficult to rise.

Trade concerns continue to support the greenback, however,with a deadline looming in the U.S.-China trade dispute and arefusal by Canada to back down on key demands in its trade talkswith Washington. urn:newsml:reuters.com:*:nL2N1VL1AL urn:newsml:reuters.com:*:nL2N1VQ19E

Technical and momentum indicators were positive for gold,but the technical picture would remain mixed unless it couldclose above $1,200.70, analysts at ScotiaMocatta said.

Fibonacci resistance was at $1,213.20 with support at$1,185.30, they said.

In other precious metals, spot silver XAG= was up 0.7percent at $14.18 after falling to its lowest since January 2016at $13.97 in the previous session.

Platinum XPT= gained 0.5 percent to $779.90 havinghit$761.80, the lowest since Aug. 16, on Tuesday.

Palladium XPD= was up 0.3 percent at $982.45 aftertouching the highest in 11 weeks at $988.47 on Tuesday.

(Additional reporting by Nallur Sethuraman in BengaluruEditing by Alexander Smith and David Evans) ((Peter.Hobson@thomsonreuters.com; +44 207 542 0083;))