BENGALURU, May 2(Reuters) - Gold prices edged up early
Wednesday, having fallen almost one percent in the previous
session on the back of a stronger U.S. dollar to hit their
lowest level this year.
FUNDAMENTALS
* Spot gold was up 0.2 percent at $1,306.51 per ounce
at 0118 GMT. Gold fell to $1,301.51 in the previous session, its
lowest level since Dec. 29.
* U.S. gold futures for June delivery rose about 0.1
percent to $1,307.60 per ounce.
* The dollar index was steady near a four-month high
at 92.446, supported by the outlook for a strong U.S. economy
and rising yields amid signs of slowdown elsewhere, especially
in Europe.
* The U.S. Federal Reserve is set to hold interest rates
steady this week but will likely further encourage expectations
that it will lift borrowing costs in June on the back of rising
inflation and low unemployment.
* The U.S. economy is expanding at a 4.1 percent annualized
rate in the second quarter as the government said construction
spending fell in March and revised up its figure on building
activity in February, the Atlanta Federal Reserve's GDPNow
forecast model showed on Tuesday.
* SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.51 percent to
866.77 tonnes on Tuesday from 871.20 tonnes on Monday.
DATA/EVENT AHEAD (GMT)
0145 China Caixin manufacturing PMI final Apr
0750 France Markit manufacturing PMI Apr
0755 Germany Markit/BME manufacturing PMI Apr
0800 Euro zone Markit manufacturing PMI final Apr
0900 Euro zone Preliminary GDP Q1
0900 Euro zone Unemployment rate Mar
1215 U.S. ADP national employment Apr
1345 U.S. ISM-New York index Apr
1800 Federal Reserve releases decision on interest rates
(Reporting by Eileen Soreng in Bengaluru; editing by Richard
Pullin)
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