SINGAPORE, April 27 (Reuters) - Gold ticked higher on
Wednesday on a softer dollar and weak U.S. economic data, but
the metal traded in a tight range as investors waited for the
Federal Reserve's policy decision later in the session.
FUNDAMENTALS
* Spot gold XAU= had risen 0.2 percent to $1,245.40 an
ounce by 0041 GMT, following a 0.4-percent gain in the previous
session.
* Data on Tuesday showed orders for long-lasting U.S.
manufactured goods rebounded far less than expected in March as
demand for automobiles, computers and electrical goods slumped,
suggesting the downturn in the factory sector was far from over.
* The report also implied that business spending and
economic growth were weak in the first quarter. Prospects for
the second quarter darkened after another report showed an ebb
in consumer confidence in April.
* The dollar closed 0.3-percent lower against a basket of
major currencies as investors believed the weakness in the U.S.
economy would prompt the Fed to be cautious about raising rates.
* The U.S. central bank began its two-day policy meeting on
Tuesday. The Fed is considered certain to keep rates steady
later on Wednesday, so the focus rests squarely on the tone of
its statement.
* Gold is highly sensitive to rising rates, which lift the
opportunity cost of holding non-yielding bullion, while boosting
the dollar, in which it is priced.
* Gold prices that hit a 13-month high last month are likely
to fall back in the short term because of a slump in demand from
key Asian consumers, GFMS analysts at Thomson Reuters said in a
report on Tuesday.
* Global gold demand tumbled by 24 percent year on year to
781 tonnes in the first three months of the year, its weakest
quarter in seven years, as buying from leading consumers India
and China plummeted, GFMS said in the first-quarter update to
its Gold Survey 2016.
* China's net gold imports via main conduit Hong Kong
climbed to a three-month high in March on restocking after the
new year holiday, but market sources said consumer demand
remained soft.
* Slowing silver supplies combined with firm manufacturing
and investment demand could give silver prices strong support in
2016, CPM Group said on Tuesday.
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MARKET NEWS
* Asian stocks inched up on Wednesday, reflecting hopes that
upcoming U.S. and Japanese central bank policy meetings could
benefit risk assets, while crude oil prices hovered near 2016
highs. MKTS/GLOB
* The dollar and yen were on the defensive early on
Wednesday, having suffered a broad retreat overnight. USD/
DATA AHEAD (GMT)
0600 Germany GfK consumer sentiment May
0600 Germany Import prices Mar
0645 France Consumer confidence Apr
1400 U.S. Pending homes sales Mar
1800 Federal Reserve releases statement after policy meeting
PRICES AT 0041 GMT
Metal Last Change Pct chg
Spot gold 1245.4 2.81 0.23
Spot silver 17.2 0.037 0.22
Spot platinum 1014.49 6.49 0.64
Spot palladium 606.35 5.85 0.97
Comex gold 1247.3 3.9 0.31
Comex silver 17.215 0.105 0.61
COMEX gold and silver contracts show the
most active months