Gold climbs to more than four-month high on US rate-cut bets

* U.S. consumer spending increased solidly in July while underlying inflation picked up as tariffs on imports raised prices of some goods, but that data will probably not prevent the Fed from cutting interest rates this month.

* On Friday, data showed that the U.S. Personal Consumption Expenditures Price index rose 0.2% month-on-month, and was up 2.6% on a year-on-year basis, both in line with expectations.

* Traders are currently pricing in an 87% chance the Fed will ease rates by 25 basis points later this month, according to the CME FedWatch tool.

* Non-yielding gold typically performs well in a low-interest-rate environment.

* On the trade front, U.S. Trade Representative Jamieson Greer said on Sunday the Trump administration is continuing its talks with trading partners despite a U.S. appeals court ruling that most of President Donald Trump's tariffs are illegal.

* Asian shares started the new month in the red on Monday after a court ruling threw another wrench into U.S. tariff policy. [MKTS/GLOB]

* Focus now shifts to U.S. non-farm payrolls data, due on Friday, that could determine the size of the Fed's expected rate cut later this month.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.01% to 977.68 tons on Friday from 967.94 tons on Thursday. [GOL/ETF]

* Elsewhere, spot silver rose 1.1% to $40.11 per ounce, platinum gained 0.8% to $1,374.95 and palladium climbed 0.4% to $1,114.

DATA/EVENTS (GMT)

0030 Japan S&P Global Mfg PMI Final SA August

0130 China RatingDog Manufacturing PMI Final August

0600 UK Nationwide house price mm, yy August

0750 France HCOB Manufacturing PMI August

0755 Germany HCOB Mfg PMI August

0800 EU HCOB Mfg Final PMI August

0830 UK S&P GLOBAL MANUFACTURING PMI August

0900 EU Unemployment Rate July