Gold prices rose on Tuesday as the dollar's rally paused, but prices held close to a 2-1/2-year low on expectations of further policy tightening by the U.S. Federal Reserve in its efforts to quell soaring inflation.


* Spot gold gained 0.6% at $1,631.89 per ounce, as of 0103 GMT. Prices hit their lowest level since April 2020 at $1,620.20 on Monday.

* U.S. gold futures rose 0.3% to $1,638.1.

* The dollar index dipped 0.2% easing off a two-decade peak hit in the previous session.

* Fed officials on Monday sloughed off rising volatility in global markets, from slumping U.S. stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation.

* Rate hikes increase the opportunity cost of holding bullion, which pays no interest, while boosting the greenback.

* Global economic growth is slowing more than it was forecast a few months ago in the wake of Russia's invasion of Ukraine, as energy and inflation crises risk snowballing into recessions in major economies, the OECD said on Monday.

* China's net gold imports via Hong Kong jumped nearly 40% to an over four-year high in August, data showed on Monday, as demand continued to rebound in the world's biggest consumer of the metal.

* Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.40% to 943.47 tonnes on Monday from 947.23 tonnes on Friday.

* Spot silver was up 1% at $18.52 per ounce, platinum rose 0.5% to $855.91 and palladium was steady at $2,046.84.

DATA/EVENTS (GMT) 1000 France Unemp Class-A SA Aug 1230 US Durable Goods Aug 1400 US Consumer Confidence Sept 1400 US New Home Sales-Units Aug

(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)