PRECIOUS-Gold steadies as stronger dollar counters safe-haven demand

* US markets shut for Labor Day holiday on Monday
* Spot gold may bounce to $1,949/oz - technicals
* India's coronavirus infections overtake Brazil
* Markets await 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 7 (Reuters) - Gold steadied in a tight range on Monday,
paring initial gains after a firmer dollar offset support from
renewed fears over the economic hit from the COVID-19 pandemic.
Spot gold XAU= was steady at $1,931.91 per ounce by 0742
GMT, after hitting a one-week low of $1,916.24 on Friday. U.S.
markets are shut for the Labor Day holiday on Monday.
U.S. gold futures GCcv1 rose 0.1% to $1,936.20.
The dollar index .DXY rose 0.2% against its rivals, making
gold expensive for holders of other currencies. USD/
The dollar's trend is the "big wall of risk" to gold right
now, said Stephen Innes, chief market strategist at AxiCorp.
"The general theme from last week's U.S. jobs report showed
that the recovery is continuing to slow... The lower for longer
interest rates narrative continues to chime well for the gold
bulls."
Federal Reserve Chairman Jerome Powell said on Friday the
U.S. jobs report for August was "a good one," but noted that
with gains likely to slow, the Fed is planning to keep its foot
on the monetary policy gas pedal for years. Global central banks have rolled out massive stimulus and
slashed interest rates to near zero to counter the economic
damage from the coronavirus, helping gold climb over 28% this
year. Focus will now be on the European Central Bank's policy
decision on Thursday.
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion.
However, low physical demand remained a headwind for gold as
coronavirus cases in the world's second biggest bullion
consumer India surpassed Brazil to take the second place after
the United States. GOL/AS
Spot gold may bounce to $1,949, as it has cleared a
resistance at $1,936 per ounce, said Reuters technical analyst
Wang Tao. TECH/C
Elsewhere, silver XAG= was steady at $26.87 per ounce,
platinum XPT= rose 0.8% to $901.89 and palladium XPD=
climbed 0.5% to $2,308.32.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Gold technical chart https://tmsnrt.rs/3371vCW
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>