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TOKYO, Aug 31 (Reuters) Gold prices rose on Thursday due to the strength in the Japanese gold futures market and firmness in oil prices, but the market was careful about taking large positions before a key monetary policy-setting meeting in Europe.

Investors were waiting to see how financial markets would react to the outcome of the European Central Bank's meeting on interest rates later in the day.

Cash gold edged up on follow-through buying after gold prices rose from lows on Wednesday and as the benchmark Tokyo Commodity Exchange gold futures jumped about 1 percent.

''Gold continues to move in a tight boxed range, but we've seen very strong demand below $610 this week,'' said Shuji Sugata, assistant manager at Mitsubishi Corp. Futures and Securities.

''Prices have edged higher and we are watching whether gold can rise further from current levels.'' As of 0334 GMT, spot gold was trading at $619.20/619.70 an ounce, up from $617.20/618.70 late in New York on Wednesday.

On Tuesday, gold had fallen to a five-week low of $606.80.

Gold was near its seven-day moving average (MA) of around $618, while several technical resistance levels were seen at its 14-day MA of $620 and its 30-day MA of $628.

Bullion gained support as oil prices rose more than half a percent on Thursday as Iran looked set to defy the United Nations' deadline for halting its nuclear enrichment, raising the risk of sanctions against the world's fourth-biggest exporter.

Rises in oil prices usually boost demand for gold as inflation concerns increase.

Later on Thursday the U.N. nuclear watchdog is likely to report that Iran has not complied with a U.N. demand to suspend its atomic fuel work, which the West fears is meant for building a bomb but Tehran insists is only for generating power.

Iran has repeatedly said it will not give up its right to nuclear power, but indicated last week it could negotiate on the scope of the plans, reinforcing U.N. powers China and Russia's resistance to any immediate punitive measures.

U.S. oil prices climbed 40 cents to $70.43 a barrel after bouncing off a 10-week low of $68.65 a barrel on Wednesday.

Firmer spot gold supported other precious metals.

Platinum edged up to $1,228/1,233 an ounce from $1,225/1,230 in New York.

Sister metal palladium inched up to $338/343, compared with $337/342 in New York.

Silver was little changed at $12.46/12.52 an ounce compared with $12.47/12.57 in late in New York.

REUTERS CS BS1131