(Corrects first bullet point to show gold prices dropped 0.2
percent on Tuesday, not rose 1.4 percent)
SINGAPORE, April 13 (Reuters) - Gold eased below a
three-week high on Wednesday as the dollar regained some ground
from the yen and equities climbed higher, but the metal remained
a favourite amid uncertainties in the global economy and timing
of a U.S. rate hike.
FUNDAMENTALS
* Spot gold XAU= eased 0.1 percent to $1,254.10 an ounce
by 0041 GMT, following a 0.2 percent drop overnight.
* The metal jumped to a three-week high of $1,262.60 on
Tuesday but pared some gains after the dollar strengthened.
* The U.S. dollar rebounded against the safe-haven yen a day
after hitting its lowest level against the currency in roughly a
year and a half on greater risk appetite from gains in equity
and oil prices. USD/
* Brent crude oil prices hit a four-month high and energy
equities rose on Tuesday after reports of an agreement between
two major producers to freeze output. MKTS/GLOB
* The dollar has been on the back foot this year as
investors scaled back expectations of rate hikes by the Federal
Reserve, while concerns over global economic growth have hit
equities.
* Fed policymakers signalled in December that four hikes
would probably be needed this year, though policymakers cut
their view in March to two rate increases for 2016. Markets are
factoring in only one rate hike.
* The Fed could reasonably raise interest rates two or three
times this year, San Francisco Fed President John Williams said
on Tuesday, adding that he does not expect much market turmoil
when it does.
* The Fed will likely have to raise interest rate around
four times this year, Richmond Fed President Jeffrey Lacker said
on Tuesday.
* Elsewhere, growing confidence in gold's price rally is
underpinning investment demand for the metal in top consumer
China, driving inflows into bullion-backed funds and prompting
financial institutions to launch new products in the country.
* SPDR Gold Trust GLD , the world's top gold-backed
exchange-traded fund, said its holdings fell 0.33 percent to
815.14 tonnes on Tuesday.
* For the top stories on metals and other news, click
TOP/MTL or GOL
DATA AHEAD (GMT)
China Trade data Mar
0900 Euro zone Industrial production Feb
1230 U.S. Retail sales Mar
1400 U.S. Business inventories Feb
PRICES AT 0041 GMT
Metal Last Change Pct chg
Spot gold 1254.1 -1.46 -0.12
Spot silver 16.1 -0.06 -0.37
Spot platinum 998.59 2.6 0.26
Spot palladium 546 1.5 0.28
Comex gold 1256.4 -4.5 -0.36
Comex silver 16.16 -0.062 -0.38
COMEX gold and silver contracts show the
most active months