Sept 1 (Reuters) - Gold prices rose to a more than
four-month high on Monday, as increased expectations of a U.S.
Federal Reserve interest rate cut this month lifted bullion's
allure.
FUNDAMENTALS
* Spot gold was up 0.3% at $3,457.16 per ounce, as of
0200 GMT, hitting its highest point since April 23.
* U.S. gold futures for December delivery gained
0.3% to $3,525.70.
* U.S. consumer spending increased solidly in July while
underlying inflation picked up as tariffs on imports raised
prices of some goods, but that data will probably not prevent
the Fed from cutting interest rates this month.
* On Friday, data showed that the U.S. Personal Consumption
Expenditures Price index rose 0.2% month-on-month, and was up
2.6% on a year-on-year basis, both in line with expectations.
* Traders are currently pricing in an 87% chance the Fed
will ease rates by 25 basis points later this month, according
to the CME FedWatch tool.
* Non-yielding gold typically performs well in a
low-interest-rate environment.
* On the trade front, U.S. Trade Representative Jamieson
Greer said on Sunday the Trump administration is continuing its
talks with trading partners despite a U.S. appeals court ruling
that most of President Donald Trump's tariffs are illegal.
* Asian shares started the new month in the red on Monday
after a court ruling threw another wrench into U.S. tariff
policy.
* Focus now shifts to U.S. non-farm payrolls data, due on
Friday, that could determine the size of the Fed's expected rate
cut later this month.
* SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings rose 1.01% to 977.68
tons on Friday from 967.94 tons on Thursday.
* Elsewhere, spot silver rose 1.1% to $40.11 per
ounce, platinum gained 0.8% to $1,374.95 and palladium
climbed 0.4% to $1,114.
DATA/EVENTS (GMT)
0030 Japan S&P Global Mfg PMI Final SA August
0130 China RatingDog Manufacturing PMI Final August
0600 UK Nationwide house price mm, yy August
0750 France HCOB Manufacturing PMI August
0755 Germany HCOB Mfg PMI August
0800 EU HCOB Mfg Final PMI August
0830 UK S&P GLOBAL MANUFACTURING PMI August
0900 EU Unemployment Rate July
(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu
Sahu)
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