PRECIOUS-Gold wins thanks to Fed rate cuts and growth concerns

* Powell Fed could give clues on short-term policy
the week

* SPDR Gold holdings fell 0.2% on Friday

(Add comments, details, update prices)

By Eileen Soreng

July 8 (Reuters) – Gold has rallied to more than $ 1,400 an ounce on
Monday, helped by the expectations of the US Federal Reserve
stay the course with a reduction in the interest rate this month despite
robust employment data in the United States and concerns about global growth persist.

Spot gold was up 0.4% to $ 1,404.48 an ounce at 1100
GMT. Gold futures in the US rose 0.5% to $ 1,407.5 an ounce.

"The Fed is likely to reduce interest rates as soon as this
and in this environment, gold as a non-productive asset
should do better and would be more attractive to investors
a world characterized by lower interest rates, "said a Mitsubishi analyst
Jonathan Butler.

Job gains, which beat forecasts, put an end to the chances of a sharp rise
Fed Rate Reduction at July 30-31, Despite Modest Pay
gains and other data showing the world's largest economy was
lose speed, meant that the central bank had yet to cut
rate per quarter point. Monday's gains, helped in part by weak global stocks,
helped gold recover slightly after a decline of more than 1% on
Friday after the data on jobs in the United States. "The resilience of ingots, which could quickly
recovering above $ 1,400, despite better than expected US data, is
confirming the huge investor interest in gold in this
scenario ", Carlo Alberto De Casa, Chief Analyst at
ActivTrades, written in a note.

"The psychological threshold of $ 1,400 is now functioning as a
support, while $ 1440 is the new key resistance level. "

Fed Chairman Jerome Powell should provide more
indices on the short-term outlook for monetary policy this week in
his semiannual testimony to the US Congress on the Economy. Fed rate cuts could also prompt China's central bank
reduce its benchmark reference rate for the first time in four
years to support an economic downturn, say analysts, joining other
to relax monetary policy. Lower interest rates reduce the opportunity cost of
holding unproductive ingots and weighing on the dollar, making
Gold cheaper for investors holding other currencies.

"We have a period of great concern around the world
current growth, making gold an attractive option
as an agent of diversification, "said Ross Strachan, an analyst at Capital Economics.

Meanwhile, the assets of SPDR Gold Trust, the largest market in the world
largest exchange-traded gold-backed fund, fell 0.18% to 796.97
tons Friday from 798.44 tons Wednesday. Among the other precious metals, silver gained 0.6% at
$ 15.06 an ounce, while palladium was stable at $ 1,566.40
and platinum rose 1% to $ 812.74 an ounce.

(Report by Eileen Soreng in Bengaluru, edited by David
Evans)

5832, outside the United States +91 80 6749 6131; Reuters Messaging:
[email protected]))