Gold prices were flat on Monday as investors maintained a cautious approach ahead of U.S. Federal Reserve's monetary policy decision this week and as optimism around a potential COVID-19 vaccine lifted appetite for riskier assets.

 

FUNDAMENTALS

* Spot gold was mostly unchanged at $1,941.11 per ounce by 0042 GMT.

* U.S. gold futures were also steady at $1,948.30.

* Asian shares started higher on Monday as hopes of a coronavirus vaccine were rekindled after AstraZeneca resumed its phase-3 trial. 

* The World Health Organization reported a record one-day increase in global coronavirus cases on Sunday, with the total rising by 307,930 in 24 hours. 

* Euro zone governments must keep spending heavily to aid the bloc's recovery from its historic pandemic-induced recession, complementing already super-easy monetary policy, European Central Bank President Christine Lagarde said on Sunday. 

* The dollar index held steady against its rivals. A stronger greenback makes gold more expensive for holders of other currencies. 

* All eyes were on the U.S. central bank's two-day policy meeting scheduled on Sept. 15-16.

* Physical gold dealers in India were forced to offer discounts for a fourth straight week as bullion remained unattractive for most retail consumers. 

* Speculators increased their net long position in gold by 3,608 contracts to 154,629 in the week ended Sept. 8. 

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,248.00 tonnes on Friday. 

* Silver fell 0.3% to $26.68 per ounce, platinum gained 0.4% to $928.61, while palladium was steady at $2,321.43.

DATA/EVENTS (GMT) 0630 India WPI Inflation YY Aug

(Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))