PRECIOUS-Gold dips as solid U.S. manufacturing data lifts dollar

* Stocks climb on positive U.S. factory data
* Dollar recovers from more than two-year low
* Spot gold may fall to $1,938/oz - technicals
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Brijesh Patel
Sept 2 (Reuters) - Gold prices slipped on Wednesday as the
dollar rebounded after robust U.S. manufacturing data bolstered
hopes of a swift global economic recovery, rubbing some of the
allure off safe-haven bullion.
Spot gold XAU= fell 0.3% to $1,964.86 an ounce by 0652
GMT, after hitting $1,991.91 on Tuesday, its highest since Aug.
19. U.S. gold futures GCcv1 dropped 0.4% to $1,971.10.
"A stronger greenback is weighing on the precious metal,"
said Margaret Yang, a strategist with DailyFx, which covers
currency, commodity and index trading community.
"The broader picture is still in favour of gold, as the U.S.
Federal Reserve and other central banks are likely to stay
accommodative for an extended period of time."
The dollar index .DXY bounced off two-year lows after U.S.
data showed manufacturing activity accelerated to a near
two-year high in August. A stronger greenback makes gold
expensive for holders of other currencies. USD/
The firm manufacturing activity also boosted investor
appetite for riskier assets, limiting inflows into safe-haven
bullion. MKTS/GLOB
However, expectations that U.S. interest rates would stay
low for longer under the new monetary policy approach from the
Fed put a floor under bullion prices.
Fed Governor Lael Brainard on Tuesday said the U.S. central
bank would need to roll out more stimulus to fulfil its new
promise of stronger job growth and higher inflation.
"With the central bank still cautious about the U.S.
economic outlook, the Fed will most likely keep rates near zero
for a long time," Avtar Sandu, a senior commodities manager at
Phillip Futures, said in a note.
Low interest rates reduce the opportunity cost of holding
non-yielding bullion, which is also viewed as a hedge against
inflation and currency debasement.
Spot gold may fall to $1,938, following its failure to break
a resistance at $1,996 per ounce, said Reuters technical
analysts Wang Tao. TECH/C
Elsewhere, silver XAG= dipped 0.8% to $27.94 per ounce,
platinum XPT= slipped 0.5% to $935.91, and palladium XPD=
fell 0.2% to $2,267.32.

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