PRECIOUS-Gold steadies as recovery fears offset stronger dollar

* Japan's economy shrank more than initially estimated in Q2
* Gold poised to break support at $1,923/oz - technicals
* Investors focus on ECB policy decision on Thursday
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Recasts, updates prices)
By Brijesh Patel
Sept 8 (Reuters) - Gold prices steadied in a tight range on
Tuesday, as doubts over a global economic recovery countered
pressure from a stronger dollar ahead of policy strategies from
central banks in Europe and North America.
Spot gold XAU= was steady at $1,929.50 per ounce by 0720
GMT. U.S. gold futures GCv1 rose 0.2% to $1,938.50.
"There is a bit of downside risk for USD denominated gold
prices heading into this week's central bank meetings," said IG
Markets analyst Kyle Rodda.
"If it's perceived they're (European Central Bank) jaw
boning the currency, that could lead to another short-term lift
in the USD and drag-on gold prices."
The dollar .DXY rose against its rivals, making gold more
expensive for holders of other currencies. USD/
Offering support to gold, hopes around a swift economic
rebound faded after data showed Japan's economy shrank more than
initially estimated in the second quarter as capital expenditure
took a hit from the pandemic. Governments and major central banks have flooded the markets
with unprecedented stimulus measures to mitigate the economic
damage caused by the coronavirus, driving gold to new highs
because of its role as a hedge against inflation and currency
debasement.
Market participants' focus will now be on Bank of Canada's
policy meeting on Wednesday, followed by the European Central
Bank's policy decision on Thursday. The two-day U.S. Federal
Reserve meeting is scheduled next week.
On the trade front, President Donald Trump on Monday again
raised the idea of decoupling the U.S. economy from China,
suggesting the United States would not lose money if the world's
two biggest economies no longer did business. Spot gold is poised to break a support at $1,923 per ounce
and fall into $1,880-$1,906 range, said Reuters technical
analyst Wang Tao. TECH/C
Elsewhere, silver XAG= fell 0.3% to $26.92 per ounce and
platinum XPT= gained 0.5% to $912.28, while palladium XPD=
climbed 0.7% to $2,309.44.

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