Gold prices were muted on Tuesday as investors awaited more cues on the health of the U.S. economy ahead of the Federal Reserve's meeting this month amid rising expectations for a pause in interest rate hikes.

FUNDAMENTALS

* Spot gold was flat at $1,937.58 per ounce by 0058 GMT, off one-month highs hit on Friday. U.S. gold futures fell 0.2% to $1,963.40 as a holiday in the United States kept trading activity limited on Monday.

* The U.S. dollar index was down 0.1% against its peers.

* Investor morale in the euro zone fell more than expected at the start of September as Germany's economic weakness remained a major drag on the region, a survey showed on Monday.

* Central banks across major developed and emerging economies took a breather in August with the pace and scale of interest rate hikes shifting another gear lower as diverging growth outlooks and inflation risks muddied the outlook ahead.

* The Bank of Japan (BOJ) will be able to gradually shift away from its easy monetary policy only after ensuring its 2% inflation goal has been sustainably achieved, former board member Goushi Kataoka said on Monday.

* Country Garden's deal with creditors for an extension on onshore debt payments worth 3.9 billion yuan ($536 million) boosted shares in the developer on Monday and gave China's crisis-ridden property sector some much-needed respite.

* Elsewhere, spot silver was down 0.1% at $23.94 per ounce, platinum dipped 0.6% to $948.20 and palladium was flat at $1,221.45.

(Reporting by Swati Verma in Bengaluru; Editing by Subhranshu Sahu)