(Adds comments, updates prices)
* U.S. manufacturing activity at near 2-year high in August
* Silver rises to three-week high
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser
By K. Sathya Narayanan
Sept 1 (Reuters) - Gold prices fell from a near two-week
high scaled earlier on Tuesday, as the dollar rebounded and
better-than-expected U.S. manufacturing data improved hopes
about a U.S. economic recovery.
Spot gold XAU= was steady at $1,970.55 per ounce by 2:23
p.m. EDT (1823 GMT), after hitting its highest since Aug. 19 at
$1,991.91.
U.S. gold futures GCv1 settled mostly flat at 1,978.90.
"The manufacturing number came out much better than expected
and that's what caused gold to pare back its gains, and (also)
gave little strength to the dollar," Bob Haberkorn, senior
market strategist at RJO Futures said.
The U.S. dollar .DXY was up 0.2% against key rivals,
recovering from a more than two-year low hit earlier in the day.
USD/
Also, weighing on prices, global stocks gained after U.S.
manufacturing activity accelerated to its highest level in
nearly two years in August, the Institute for Supply Management
(ISM) data showed. MKTS/GLOB
"(The better data) doesn't necessarily change the picture
for the U.S. Federal Reserve. The trend (in gold) is still
higher," Haberkorn, however added.
The U.S. central bank last week announced an average
inflation target policy, which will allow rates to stay low even
if inflation rises a bit in the future. Gold should remain supported in this environment of firming
inflation expectations and a lower U.S. dollar, said Daniel
Ghali, commodity strategist at TD Securities.
Bullion, which has risen about 30% so far this year, is seen
as a hedge against inflation and currency debasement, while
lower interest rates reduce the opportunity cost of holding
non-yielding bullion.
Elsewhere, silver XAG= was up 0.2% at $28.27 per ounce,
after hitting its highest since Aug. 11.
Platinum XPT= rose 1.4% to $942.09 and palladium XPD=
climbed 1.5% to $2,277.11.
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Gold's rally in 2020 https://tmsnrt.rs/3hSPbMY
Gold's rally in 2020 https://tmsnrt.rs/3lDrv1r
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