Gold lingers near 1-month low as US dollar keeps momentum

Gold prices were pressured on Wednesday and traded near their weakest levels in a month touched in the previous session as the U.S. dollar firmed on the back of a higher-for-longer interest rate scenario.

FUNDAMENTALS

* Spot gold was flat at $1,900.49 per ounce by 0119 GMT, hovering near its lowest since Aug. 23 touched on Tuesday. U.S. gold futures eased 0.1% to $1,918.20.

* The dollar traded near a 10-month high against its major peers on Wednesday as Treasury yields stayed elevated on the prospect of higher-for-longer U.S. rates. [USD/] [US/]

* There is a 40% chance that the Fed will need to raise interest rates "meaningfully" to beat inflation, Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday.

* Higher interest rates raise the opportunity cost of holding bullion, which is priced in dollars and does not yield interest.

* U.S. consumer confidence dropped to a four-month low in September, weighed down by persistent worries about higher prices and rising fears of a recession, though households remained generally upbeat about the labor market.

* Market focus now turns to the personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, due on Friday.

* The U.S. Senate on Tuesday took a step forward on a bipartisan bill meant to stop the government from shutting down in just five days, while the House sought to push ahead with a conflicting measure backed only by Republicans.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.4% on Tuesday. [GOL/ETF]

* China's gold imports via Hong Kong rebounded in August from the previous month, data showed on Tuesday, with the issuance of fresh quotas to local banks likely to boost shipments into the world's top gold consumer.

* Spot silver dropped 0.6% to $22.72 per ounce, platinum shed 0.2% to $901.95 and palladium rose gained 0.2% to $1,226.32.