February 13, 2018 / 1:31 AM / 9 days ago

PRECIOUS-Gold holds steady on weaker dollar ahead of U.S. data

    Feb 13 (Reuters) - Gold prices held steady on Tuesday,
buoyed by a weaker dollar as investors waited for inflation data
for clues on the pace of U.S. interest rate hikes.
    
    FUNDAMENTALS  
    * Spot gold        was mostly unchanged at $1,322 an ounce,
as of 0102 GMT. On Monday, it rose 0.5 percent in its biggest
one-day percentage gain in more than a week.
    * U.S. gold futures         were down 0.1 percent at
$1,324.6 per ounce.
    * Asian stocks pulled further away from two-month lows on
Tuesday, lifted by Wall Street's extended rebound from last
week's steep fall.            
    * U.S. inflation expectations edged lower last month,
dulling a year-end rise, according to a Federal Reserve Bank of
New York survey published on Monday.             
    * U.S. inflation data for January is due on Wednesday and
the U.S. Federal Reserve next meets on March 20-21.            
    * President Donald Trump proposed a budget on Monday that
calls for cuts in domestic spending and social programmes such
as Medicare and seeks a sharp increase in military spending and
funding for a wall on the Mexican border.             
    * U.S. Treasury yields rose on Monday, with benchmark
10-year yields hitting a four-year high and those on 30-year
bonds climbing to an 11-month peak, as a stock rally and
improving risk appetite diminished the safe-haven appeal of
government debt.             
    * Euro zone government bond yields edged higher on Monday on
signs that policymakers, with their eyes on inflation, will
continue on their monetary tightening path regardless of recent
equity market volatility.             
    * The dollar index against a basket of six major currencies
       extended modest losses suffered overnight and dipped 0.1
percent to 90.138.       
    * Goldman Sachs said the current market turbulence poses
only a "modest" risk to their "optimistic" view on the global
economy as much of the losses have been in the U.S. stock market
due to rising bond yields and inflation worries.             
    * Turkey raised gold holdings by 17.46 tonnes to 582.25
tonnes in January, 2018, according to IMF data.             
    
    DATA AHEAD (In GMT)
    
     0930   UK     Consumer prices                 Jan
     1100   U.S.   NFIB business optimism          Jan

 (Reporting by Eileen Soreng in Bengaluru Editing by Joseph
Radford)
  
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