PRECIOUS-Gold drifts higher as dollar eases over Catalan relief

* Dollar index falls to lowest in over a week

* Fed September policy meeting minutes due at 1800 GMT

(Adds comments, updates prices, adds LONDON dateline) LONDON, Oct 11 (Reuters) - Gold edged higher on Wednesday after Catalonia's leader balked at making a formal declaration of independence from Spain, sending the euro higher and the dollar down.

The dollar index fell to the lowest in over a week,

making dollar-priced gold cheaper for buyers using other currencies. "These concerns about the ramifications of the Catalan independence referendum are fading, giving some support to the euro and weakening the dollar," said Jens Pedersen, senior analyst at Danske Bank in Copenhagen.

Spot gold was up 0.2 percent at $1,289.40 an ounce by 1000 GMT while U.S. gold futures for December delivery

eased 0.2 percent to $1,291.70 per ounce. Investors were awaiting minutes from the U.S. Federal Reserve's latest meeting, due to be released at 1800 GMT, for clues on the outlook for potential interest rate rises. But there is scant chance they will have a major impact, Pedersen said, since they probably will merely support expectations that the U.S. central bank will raise rates in December, for a third time this year. Gold is highly sensitive to rising interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which the metal is priced. Gold's rise was lackluster, however, with tensions over North Korea failing to worry markets. "Even news that the U.S. had flown two B-1 aircraft over the Korean peninsula failed to raise the market from its lethargy," said Jeffrey Halley, senior market analyst at OANDA. The U.S. military flew two strategic bombers over the Korean peninsula in a show of force late on Tuesday, as President Donald Trump met top defense officials to discuss how to respond to any threat from North Korea.

In other precious metals, silver rose 0.3 percent to

$17.13 an ounce, having hit a three-week high in the previous session.

Platinum dipped 0.1 percent at $928.20 an ounce and palladium was trading 0.2 percent higher at $935.10 an


(Additional reporting by Apeksha Nair in Bengaluru; Editing by Dale Hudson)