PRECIOUS-Gold eases as recovery hopes gain traction

* Equities rise, dollar recovers from multi-year low
* Fundamentals for gold still positive, say analysts
* India gold imports rise in August
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Diptendu Lahiri
Sept 2 (Reuters) - Gold backtracked on Wednesday from a near
two-week high in the prior session as the dollar rebounded and
strong U.S. manufacturing data raised hopes of a swifter global
economic recovery.
Spot gold XAU= fell 0.7% to $1,957.15 per ounce by 1133
GMT, after hitting its highest since Aug. 19 at $1,991.91 on
Tuesday.
U.S. gold futures GCcv1 dropped 0.6% to $1,966.70.
Gold is being weighed down by the rise in equity markets and
the dollar, but "it's not very surprising that investors will
take a little bit of profit" after Tuesday's rally in gold, said
Commerzbank analyst Eugen Weinberg.
"However, besides other strong fundamentals like weak
economy and lower interest rates, Australian and U.S. mints
reporting very high demand for gold coins will take gold above
$2,000 in the long run."
The dollar index <.DXY > rebounded from a two-year low after
data revealed that manufacturing activity in the U.S. increased
more than expected in August, which followed similar positive
indicators this week from China and Europe.
A stronger greenback makes gold expensive for holders of
other currencies. USD/
The robust data also boosted equity markets. MKTS/GLOB
Nonetheless, expectations that U.S. interest rates would
stay low for longer under the new monetary policy approach from
the U.S. Federal Reserve put a floor under gold
prices. Low interest rates reduce the opportunity cost of holding
non-yielding bullion, also viewed as a hedge against inflation
and currency debasement.
On the physical side, although overall consumption remained
weak, especially in top buyer China, gold sales from Australia's
Perth Mint rose threefold year-on-year in August, while India
saw imports jump, pointing to a gradual recovery. Meanwhile, Turkey's gold imports surged four-fold as Turks
scrambled to hedge against record drops in the lira currency.
Elsewhere, silver XAG= dipped 2.1% to $27.58 per ounce,
platinum XPT= slipped 1.2%, to $929.94, and palladium XPD=
fell 1% to $2,248.72.

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