PRECIOUS-Gold prices rise on September US rate-cut expectations

* India's gold duty cut likely to spark buying spree * Odds of 25 bp rate cut in Sept at 62% - CME FedWatch (Updates prices and graphics) By Daksh Grover Aug 26 (Reuters) - Gold prices firmed on Monday, aided by a weaker dollar and lower Treasury yields after dovish remarks from U.S. Federal Reserve Chair Jerome Powell cemented expectations for a September rate cut. Spot gold XAU= rose 0.4% to $2,520.39 per ounce by 0756 GMT, after gaining more than 1% in the previous session. U.S. gold futures GCcv1 also gained 0.4% to $2,556.00. Powell on Friday endorsed an imminent start to rate cuts, saying further cooling in the job market would be unwelcome. The dollar =USD hovered near its lowest level in 13 months, making gold cheaper for other currency holders, while benchmark 10-year Treasury yields US10YT=RR also eased. USD/ US/ "Gold will remain in vogue with investors so long as the dollar remains on the back foot ahead of anticipated rate cuts. If U.S. yields remain suppressed, gold may fancy taking a run towards $2,550 this week if resistance around $2,530 can be cleared first," said Tim Waterer, chief market analyst, KCM Trade. Traders have fully priced in a cut for next month, with a 62% chance of a 25 basis point reduction and a 38% chance of a bigger 50 bp reduction, according to the CME FedWatch tool. A low interest rate environment tends to boost non-yielding bullion's appeal. Adding to gold's upward momentum is the uncertainty caused by the ongoing Middle East tensions, said Kelvin Wong, OANDA's senior market analyst for Asia Pacific. Gaza ceasefire talks took place in Cairo on Sunday but neither Hamas nor Israel agreed to several compromises presented by mediators, two Egyptian security sources said. Elsewhere, India's gold demand during the upcoming festive season is likely to remain robust as the substantial reduction in import duty has made prices appealing, industry officials said. Spot silver XAG= rose 0.9% to $30.08, platinum XPT= gained 0.2% to $964.46 and palladium XPD= eased 0.2% to $961.25. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3T6PoAW ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Daksh Grover in Bengaluru; Editing by Subhranshu Sahu, Kirsten Donovan) (([email protected];))