Nov 3 (Reuters) - Gold prices slipped on Monday,
pressured by a stronger dollar as investors dialed back bets for
further Federal Reserve rate cuts following Chair Jerome
Powell's hawkish remarks last week, while easing U.S.-China
trade tensions also weighed on bullion.
FUNDAMENTALS
* Spot gold was down 0.8% at $3,968.76 per ounce, as
of 0016 GMT.
* U.S. gold futures for December delivery slipped
0.5% to $3,978.30 per ounce.
* The U.S. dollar held steady near three-month highs
reached last week, making greenback-priced bullion more
expensive for other currency holders.
* The U.S. central bank cut interest rates on Wednesday by a
quarter of a percentage point for the second time this year,
taking the benchmark overnight rate to a target range of
3.75%-4.00%.
* Non-yielding gold thrives in a low interest rate
environment and during economic uncertainties.
* Traders now see a 71% chance that the Fed will cut rates
again in December, down from over 90% before Powell's remarks,
as per CME's FedWatch Tool.
* U.S. President Donald Trump said on Thursday he had agreed
with Chinese President Xi Jinping to trim tariffs on China in
exchange for Beijing cracking down on the illicit fentanyl
trade, resuming U.S. soybean purchases and keeping rare earths
exports flowing.
* Parts of the U.S. economy, particularly housing, may
already be in recession because of high interest rates, Treasury
Secretary Scott Bessent said on Sunday, repeating his call for
the Fed to accelerate rate cuts.
* Gold has gained 51% year-to-date, supported by
geopolitical and economic uncertainties, U.S. rate-cut bets and
sustained central bank buying.
* Bullion prices hit a record high of $4,381.21 on October
20, but have fallen more than 10% since then, in part due to
easing trade tensions.
* Meanwhile, SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, said its holdings fell 0.11%
to 1,039.20 metric tons on Friday from 1,040.35 tons on
Thursday.
* Elsewhere, spot silver fell 0.5% to $48.41 per
ounce, platinum was down 0.1% at $1,566.40 and palladium
lost 0.6% to $1,424.88.
DATA/EVENTS (GMT)
0145 China RatingDog Manufacturing PMI Final
Oct
0850 France HCOB Manufacturing PMI Oc
0855 Germany HCOB Mfg PMI Oct
0900 EU HCOB Mfg Final PMI Oct
0930 UK S&P GLOBAL MANUFACTURING PMI Oct
1445 US S&P Global Mfg PMI Final Oct
1500 US ISM Manufacturing PMI Oct
(Reporting by Ishaan Arora in Bengaluru; Editing by Subhranshu
Sahu)
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