PRECIOUS-Gold dips on dollar gains, with central banks in focus

* Gold likely to trade sideways for some time -analyst
* U.S. markets shut for Labor Day holiday on Monday
* India's coronavirus infections overtake Brazil
* Markets await ECB policy decision on Thursday
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(New throughout, updates prices, market activity and comments)
By Diptendu Lahiri
Sept 7 (Reuters) - Gold eased on Monday as the dollar
strengthened, although economic uncertainties limited losses for
the precious metal as investors awaited developments from
central banks.
Spot gold XAU= was down 0.2% to $1,928.82 per ounce at
2:01 p.m. EDT (1801 GMT), while U.S. gold futures GCv1 were
little changed at $1,933.60, with U.S. markets shut for the
Labor Day holiday.
"A higher dollar is weighing on gold, while longer-term
uncertainties still persisting in the market is putting a floor
under prices," Carsten Menke, analyst at Julius Baer, said.
Menke said gold is likely to trade sideways "as recessionary
fears have already been priced in and investors are now waiting
to see what happens next in term of central bank policies".
The dollar index .DXY rose 0.3%, making gold more
expensive for those holding other currencies. USD/
Global central banks have cut interest rates to tackle the
coronavirus crisis, with gold gaining over 27% this year as
lower interest rates decrease the opportunity cost of holding
non-yielding bullion. Investors now focused on the European Central Bank's policy
decision on Thursday.
"We wouldn't be surprised to see gold bouncing off the lower
end of this corridor and going higher over the next weeks, but a
fall below $1,900 cannot be ruled out if there's a chance of
expectation of stronger economic data from U.S.," Commerzbank
analyst Eugen Weinberg said.
Meanwhile, coronavirus cases in the world's second-largest
bullion consumer India rose above Brazil into second place
behind the United States. GOL/AS
"India's gold imports last month were good and the recent
price movement was not so much initiated and supported by
physical demand for bars and coins but exchange-traded funds,"
Weinberg added
Elsewhere, silver XAG= rose 0.5% to $27 per ounce, while
platinum XPT= jumped 1.5% to $908.26 and palladium XPD=
edged lower by 0.1% to $2,295.13.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Gold technical chart https://tmsnrt.rs/3371vCW
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>