for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

PRECIOUS-Gold steadies, but set for first monthly dip in 5

    * Dollar set for fourth consecutive monthly decline
    * Gold on track for first monthly fall in five
    * Silver heads for fifth straight monthly gain
    * Interactive graphic tracking global spread of coronavirus:
open
tmsnrt.rs/3aIRuz7 in an external browser

 (Recasts, adds quotes, updates prices)
    By Diptendu Lahiri
    Aug 31 (Reuters) - Gold traded in a narrow $20 range on
Monday as it headed for its first monthly decline in five,
although a weaker dollar offset pressure from increased appetite
for risk.
    Spot gold        edged up 0.1% to $1,966.96 per ounce by
1302 GMT. Activity was subdued as a British bank holiday limited
trade and after it touched its highest since Aug. 19 at
$1,976.14 during the Asian session.
    The metal was still down slightly for August, about 0.2%,
after a volatile month during which it hit an all-time peak of
$2,072.49 before consolidating below the key technical level of
$1,900 as investors reassessed their positions from the record
run.
    U.S. gold futures         were steady at $1,975.
    "Potential dovish policies from the U.S. Federal Reserve and
structural problems in the U.S. economy can take the dollar even
lower and this added to the already existing uncertainties makes
gold even more attractive," said UBS analyst Giovanni Staunovo.
    The dollar        continued its retreat, making gold cheaper
for holders of other currencies.       
    Capping gold's advance, global equities held near record
highs as investors bet on continued central bank monetary
support to revive the economy from a pandemic-induced slump.
           
    The Fed signalled that its primary overnight interest rate
could remain close to zero for years, which decreases the
opportunity cost of holding non-yielding gold.             
    "What the Fed does next is crucial for gold," UBS analysts
said in a note. 
    Real rates should ease further and lift gold, but ambiguity
over the Fed's September meeting is a risk, they added.
    Gold has gained nearly 30% this year, with its safe-haven
appeal bolstered by economic uncertainty stemming from the
pandemic as well as the November U.S. elections.
    Silver        jumped 1.7% to $27.95 an ounce, on track for a
fifth straight monthly gain with an advance of nearly 15%.
    Platinum        fell 0.3% to $928.23, while palladium       
was little changed at to $2,206.41.

 (Reporting by Diptendu Lahiri in Bengaluru;
Editing by David Goodman and Barbara Lewis)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up