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PRECIOUS-Gold's relief rally fizzles as dollar firms on recession risks

          Sept 29 (Reuters) - Gold prices retreated on Thursday as
the U.S. dollar firmed on concerns that rising interest rates
would spark a global recession, making greenback-priced bullion
more expensive for overseas buyers.
    * Spot gold        was down 0.2% at $1,656.59 per ounce, as
of 0142 GMT. In the previous session, bullion rose as much as
    * U.S. gold futures        dipped 0.2% to $1,667.10.
    * The dollar index        was up 0.2%, although the unit
retreated from a two-decade peak overnight as the sterling
rallied following the Bank of England's purchase of UK
government bonds to restore financial stability in markets.

    * The lack of clear progress on inflation means the U.S.
central bank needs "moderately restrictive" interest rates that
should reach a level between 4.25% and 4.50% by the end of this
year, Atlanta Fed President Raphael Bostic said on Wednesday.

    * Gold prices have fallen 20% since scaling above the key
$2,000 per ounce level in March, as rapid U.S. monetary
tightening made non-yielding gold less attractive and boosted
the dollar to multi-year peak.
    * The U.S. trade deficit in goods narrowed for a fifth
straight month in August amid a decline in imports, which is
being driven by slowing domestic demand as the Federal Reserve
aggressively tightens monetary policy to tame inflation.

    * World Bank President David Malpass warned on Wednesday
that it could take years for global energy production to
diversify away from Russia, prolonging the risk of stagflation,
or a period of low growth and high inflation.
    * Spot silver        fell 0.4% to $18.82 per ounce, platinum
       was down 0.6% at $858.54 and palladium        dropped 1%
to $2,134.52.
    0900  EU       Consumer Confid. Final  Sept
    1200  Germany  CPI Prelim YY           Sept
    1200  Germany  HICP Prelim YY          Sept
    1230  US       GDP Final               Q2
    1230  US       Initial Jobless Clm     Weekly
 (Reporting by Eileen Soreng in Bengaluru; Editing by Sherry

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