Gold eases with spotlight on US economic data

Gold prices slipped in early Asian hours on Tuesday, as investors awaited a slew of U.S. economic data to gauge the size of the Federal Reserve‘s expected interest rate cut this month.

FUNDAMENTALS

* Spot gold was down 0.1% at $2,495.79 per ounce, as of 0031 GMT, after hitting a more than one-week low in the previous session.

* U.S. gold futures was little changed at $2,527.70.

* The major event this week will be the U.S. non-farm payrolls report due on Friday. The ISM surveys, JOLTS job openings and ADP employment report are also on investors’ radar.

* Traders currently see a 31% chance of a 50-basis-point rate cut at the U.S. central bank’s Sept. 17-18 policy meet and a 69% chance of a quarter-point cut.

* Lower interest rates reduce the opportunity cost of holding the zero-yield bullion.
* Last week, data showed that U.S. consumer spending increased solidly in July, suggesting the economy remained on firmer ground early in the third quarter and arguing against a half-percentage-point interest rate cut from the Fed.
* Meanwhile, factories in the euro zone remained mired in contraction last month, surveys showed, with the data suggesting a recovery could be some way off but Asian and British manufacturers showed tentative signs of recovery.

* Spot silver dipped 0.1% to $28.47 per ounce, platinum fell 0.7% at $923.88 and palladium lost 0.4% to $975.00.

* Sibanye Stillwater on Monday said it will report a half-year loss hurt by a 7.5 billion rand ($420 million) writedown on its U.S. assets reflecting sliding palladium prices.

DATA/EVENTS (GMT)

1345 US S&P Global Mfg PMI Final August

1400 US ISM Manufacturing PMI August.