PRECIOUS-Gold rises as Fed rate cut bets pressure dollar, yields

Aug 5 (Reuters) - Gold prices rose on Tuesday, after gaining in the last three sessions, supported by a weaker U.S. dollar and lower Treasury yields following last week's weak U.S. jobs data that boosted expectations of a Federal Reserve rate cut in September.

FUNDAMENTALS

* Spot gold XAU= rose 0.2% to $3,380.61 per ounce as of 0052 GMT. U.S. gold futures GCcv1 also gained 0.2% to $3,434.30.

* The dollar index .DXY fell for the third straight session on Tuesday, making gold more affordable for holders of other currencies. Meanwhile, the yield on the benchmark 10-year Treasury note US10YT=RR dropped to a three-week low. USD/ US/

* On Friday, U.S. President Donald Trump fired Erika L. McEntarfer, the commissioner of the U.S. Bureau of Labor Statistics, after data showed employment growth was weaker than expected last month.

* U.S. employment growth was softer than expected in July, while the non-farm payrolls counts for May and June were revised down by a massive 258,000 jobs, suggesting a sharp deterioration in the labor market conditions.

* San Francisco Fed Bank President Mary Daly said on Monday that given mounting evidence that the U.S. job market is softening and no signs of persistent tariff-driven inflation, the time is nearing for rate cuts.

* According to the CME FedWatch tool, traders now see an 94.4% chance of a September rate cut. FEDWATCh

* Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment.

* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.18% to 954.80 tonnes on Monday from 953.08 tonnes on Friday. GOL/

* Elsewhere, spot silver XAG= rose 0.1% to $37.41 per ounce, platinum XPT= gained 0.1% to $1,330.17 and palladium XPD= eased 0.1% to $1,204.87.

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