PRECIOUS-Gold slumps over 1.5% on dollar rebound, economic recovery hopes

* Dollar recovers from multi-year low
* Platinum slips over 4% to near two-week low
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comments, updates prices)
By K. Sathya Narayanan
Sept 2 (Reuters) - Gold fell more than 1.5% on Wednesday as
the dollar firmed and a strong rebound in U.S. manufacturing
sector fuelled hopes of a rapid recovery in the coronavirus-hit
economy.
Spot gold XAU= fell 1.6% to $1,939.66 per ounce at 1:50
p.m. EDT (1750 GMT). U.S. gold futures GCv1 settled down 1.7%
at 1,944.70.
"The main factor is the stronger dollar. (Gold) is moving in
a completely inverse direction to dollar today," Edward Meir, an
analyst at ED&F Man Capital Markets said, adding good U.S.
factory order number for July was also weighing on the metal.
The dollar .DXY rose 0.5%, further recovering from a
more-than two-year low hit in the last session. USD/
New orders for U.S.-made goods increased more than expected
in July, while Tuesday's U.S. manufacturing data showed activity
accelerated to a near two-year high in August, increasing
optimism about a steady recovery. U.S. private payrolls, on the other hand, increased less
than expected in August, pointing to a slowing labor market
recovery. "As far as the economy is concerned, you are going to get
this small bounces in economic data but you are not going to get
any significant change in the economy what so ever, not for a
long time," said Phillip Streible, chief market strategist at
Blue Line Futures in Chicago.
Investors are now focusing on Thursday's initial U.S.
jobless claims report and Friday's non-farm payroll data.
Gold should remain supported as buyers tend to step in on
big dips on continued concerns of the pandemic and lower
interest rate environment, George Gero, managing director at RBC
Wealth Management, said in a note.
The safe-haven metal has gained about 27% so far this year.
Elsewhere, silver XAG= fell 3.2% to $27.27 per ounce and
palladium XPD= declined 1.3% to $2,243.19.
Platinum XPT= dropped 4.2% to $901.62, having touched a
near two-week low earlier.