SINGAPORE, April 26 (Reuters) - A weaker dollar helped gold
extend gains into Tuesday, with investors adjusting positions
ahead of policy meetings this week at the Bank of Japan and the
U.S. Federal Reserve.
FUNDAMENTALS
* Spot gold XAU= had edged up 0.1 percent to $1,238.76 an
ounce by 0051 GMT, after gaining 0.5 percent in the previous
session.
* The U.S. dollar slipped against the yen on Monday as
traders took profits from the greenback's recent rally against
the Japanese currency, while the dollar weakened against other
major currencies on expectations for a dovish Fed.
* Speculation of further easing sent the yen reeling late
last week, but uncertainty over whether the BOJ will actually
deliver fresh stimulus at its April 27-28 meeting saw the
Japanese currency recover some ground on Monday. USD/
* The Fed also holds a policy meeting this week, with the
two-day gathering kicking off on Tuesday. The U.S. central bank
is not expected to raise interest rates at the meeting, but
markets will be looking for its take on the global economy and
its monetary policy outlook.
* Economists expect the Fed to deliver a rate hike in June,
and follow up with another by year-end. But interest rate
futures show less conviction, underscoring an ongoing wide gap
between markets and policymakers on the trajectory of rates.
* Gold is highly sensitive to rising rates, which lift the
opportunity cost of holding non-yielding assets such as bullion,
while boosting the dollar.
* Assets in SPDR Gold Trust, the largest gold-backed
exchange-traded fund, fell 0.3 percent to 802.65 tonnes on
Monday, though remained not too far off a two-year high reached
earlier this year. GOL/ETF
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* U.S. stock prices fell on Monday due to weaker oil prices
and disappointing company results. MKTS/GLOB
DATA AHEAD (GMT)
1230 U.S. Durable goods orders Mar
1300 U.S. S&P/Case-Shiller housing index Feb
1345 U.S. Markit services PMI flash Apr
1400 U.S. Consumer confidence Apr
PRICES AT 0051 GMT
Metal Last Change Pct chg
Spot gold 1238.76 1.26 0.1
Spot silver 17.006 0.017 0.1
Spot platinum 1013.91 2.41 0.24
Spot palladium 603.7 2.7 0.45
Comex gold 1240.6 0.4 0.03
Comex silver 17.02 0.011 0.06
COMEX gold and silver contracts show the
most active months