May 1 (Reuters) - Gold prices eased on Monday as the dollar ticked up, while traders awaited the U.S. Federal Reserve's policy meeting due this week.
FUNDAMENTALS
* Spot gold was down 0.2% at $1,986.15 per ounce by 0017 GMT. U.S. gold futures fell 0.2% to $1,995.00.
* The dollar index rose 0.1%, making gold more expensive for overseas buyers.
* U.S. consumer spending was unchanged in March as an increase in outlays on services was offset by a decline in goods, but persistent strength in underlying inflation pressures could see the Fed raising interest rates again this week.
* The FOMC (Federal Open market Committee) meeting is due on May 2-3, with investors expecting a 89.1% chance of a 25 basis points rate hike.
* Gold is known as an inflation hedge, but rising rates tend to dull zero-yielding asset's appeal.
* High gold prices kept physical demand tepid in key Asian centres last week, prompting dealers in India to extend discounts after a key bullion-buying festival spurred limited activity.
* Spot silver fell 0.3% to $24.95 per ounce, while platinum lost 0.7% to $1,066.55 per ounce. Palladium inched 0.1% lower to $1,500.26.
* China's manufacturing activity unexpectedly shrank in April, raising pressure on policymakers seeking to boost an economy struggling for a post-COVID lift-off amid subdued global demand and persistent property weakness.
DATA/EVENTS (GMT, April) 0030 Japan JibunBK Mfg PMI Final SA 1345 US S&P Global Mfg PMI Final 1400 US ISM Manufacturing PMI (Reporting by Ashitha Shivaprasad in Bengaluru)
