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PRECIOUS-Gold gains on softer dollar, but Fed hike view caps rise

Published 01/09/2015, 10:59 am
Updated 01/09/2015, 11:07 am
© Reuters.  PRECIOUS-Gold gains on softer dollar, but Fed hike view caps rise
XAU/USD
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MANILA, Sept 1 (Reuters) - Gold edged higher on Tuesday as the dollar weakened, but expectations the Federal Reserve could go ahead with an interest rate increase this month kept gains in check.

FUNDAMENTALS

* Spot gold XAU= was up 0.4 percent at $1,138.41 an ounce by 0046 GMT, after an uneventful session on Monday. Bullion ended August 3.5-percent higher as worries over China's slowing economy sparked safe-haven bids that proved fleeting as the metal has come off a seven-week top.

* There will be more indications on how China's economy fared last month when the government releases gauges for the manufacturing and services sectors this morning.

* U.S. gold for December delivery GCcv1 rose half a percent to $1,138.30 an ounce.

* Federal Reserve Vice Chairman Stanley Fischer last week did not rule out the possibility of a rate hike in September even as the world's financial markets have been through wild swings in recent weeks.

* U.S. Mint sales of American Eagle gold coins fell 40 percent in August from July's highest level in more than two years as concern about a slowing Chinese economy lifted bullion prices above a 5-1/2-year low. ID:nL1N116241

* For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* U.S. stock futures ESc1 fell more than 1 percent in early Asian trade as investors worried a potential rate hike by the Fed later this month could rock the global economy already facing pressure from a slowdown in China.

DATA AHEAD (GMT)

0100 China

Official manufacturing PMI

Aug

0100 China

Official non-manufacturing PMI

Aug

0145 China

Caixin manufacturing PMI final

Aug

0145 China

Caixin services PMI

Aug

0755 Germany

Markit/BME manufacturing PMI

Aug

0755 Germany

Unemployment rate

Aug

0800 Euro zone

Markit manufacturing PMI final

Aug

0900 Euro zone

Unemployment rate

Aug

1400 U.S.

Construction spending

July

1400 U.S.

ISM manufacturing PMI

Aug

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