Gold subdued on dollar strength as markets await economic data

Aug 1 (Reuters) - Gold prices edged lower on Tuesday as the U.S. dollar firmed, while investors looked forward to key economic data this week for signs on how long the interest rates could keep rising to quell sticky inflation.

FUNDAMENTALS

* Spot gold was down 0.1% at $1,963.04 per ounce by 0116 GMT, while U.S. gold futures dropped 0.4% to $1,962.90 per ounce.

* Gold prices ended July 2.3% higher, the biggest monthly rise in four months on investor expectations that an end to the rate-hiking cycle by global central banks was nearing. Lower rates boost demand for zero-yield bullion.

* Chicago Fed President Austan Goolsbee on Monday said the U.S. central bank is "walking the line pretty well" on bringing inflation down without causing a recession, and will watch the data as September approaches to judge if more monetary tightening may be appropriate.

* U.S. July jobs report and ISM surveys on manufacturing and services will be scanned this week to assess the impact of higher borrowing costs on the economy.

* The dollar strengthened after a Federal Reserve survey showed U.S. banks reported tighter credit standards and weaker loan demand from both businesses and consumers during the second quarter, evidence that the central bank's rate-hike campaign is slowing the nation's financial gears as intended.

* Chinese authorities released additional policy guidelines on Monday but no concrete measures to boost the sputtering economy and domestic consumption, leaving investors wanting as dull activity data heightened pressure for officials to act.

* Among other precious metals, spot silver eased 0.3%to $24.70 an ounce. Platinum was flat at $948.77, and palladium fell 0.3% to $1,278.04.

DATA/EVENTS (GMT) 0145 China Caixin Mfg PMI Final July 0430 Australia RBA Cash Rate Aug 0600 UK Nationwide House Price MM, YY July 0750 France S&P Global Mfg PMI July 0755 Germany HCOB Mfg PMI July 0755 Germany Unemployment Chg, Rate SA July 0800 EU HCOB Mfg Final PMI July 0830 UK S&P GLBL/CIPS Mfg PMI Final July 0900 EU Unemployment Rate June 1345 US S&P Global Mfg PMI Final July 1400 US ISM Manufacturing PMI July (Reporting by Swati Verma in Bengaluru; Editing by Rashmi Aich)