Sept 1 (Reuters) - Gold held steady near a two-week high on
Tuesday as a weaker dollar and ultra-low interest rate
environment kept demand solid for the safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,968.98 per ounce
by 0041 GMT, after hitting its highest since Aug. 19 at
$1,976.14 on Monday.
* U.S. gold futures GCv1 eased 0.1% to $1,975.80.
* The dollar index .DXY held close to a more than two-year
low against its rivals, making gold less expensive for holders
of other currencies. USD/
* U.S. Federal Reserve Chairman Jerome Powell outlined an
accommodative policy change last week that is believed could
result in inflation moving slightly higher and interest rates
staying lower for longer.
* Fed Vice Chair Richard Clarida on Monday expanded on
Powell's comments saying that under the U.S. central bank's new
policy view, a low rate of unemployment does not on its own
trigger higher interest rates. * Gold tends to appreciate on expectations of lower interest
rates, which reduce the opportunity cost of holding non-yielding
bullion.
* Asian stocks were set to weaken on Tuesday following a
softer Wall Street close. MKTS/GLOB
* More than 25.38 million people have been reported to be
infected by the novel coronavirus globally and 847,287 have
died, according to a Reuters tally. * Market participants now await the release of China
manufacturing data and an interest rate decision from the
Australian central bank.
* Meanwhile, Japan's factory activity contracted at the
slowest pace in six months in August. * Silver XAG= fell 0.2% to $28.17 per ounce, platinum
XPT= rose 0.3% to $931.87, and palladium XPD= dropped 0.3%
to $2,235.64.
DATA/EVENTS (GMT)
0145 China Caixin Mfg PMI Final Aug
0800 EU Markit Mfg Final PMI Aug
1345 US Markit Mfg PMI Final Aug
1400 US ISM Manufacturing PMI Aug