* Gold steadies, after hitting highest since Jan 2015 on
Friday
* Dollar hits fresh 18-month low versus the yen
* Gold could climb to $1,375 this month - INTL FCStone
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, May 2 (Reuters) - Gold traded near a 15-month
peak on Monday as a tumble in the dollar and weakness in global
equities pushed up the metal to near $1,300 an ounce.
Spot gold XAU= was little changed at $1,292.96 an ounce by
0642 GMT, after climbing to $1,296.11 on Friday, the highest
level since January 2015.
U.S. gold futures GCcv1 rose 0.4 percent to $1,295.30.
They hit a 15-month top of $1,299 in the previous session before
paring some gains.
"With the majority of Asia out today and London on holiday
tonight we are expecting a range-bound session. However as gold
trades towards $1,300, days of thin liquidity can throw up
surprises," said MKS Group trader Sam Laughlin.
Several markets are shut on Monday for the Labour Day
holiday.
The U.S. dollar slumped to an 18-month low against the yen.
The dollar index .DXY , which measures the greenback against a
basket of six major currencies, fell for a sixth straight
session to hit an eight-month low.
Last week, the dollar had logged its biggest weekly
percentage decline against the yen since the 2008 financial
crisis in the aftermath of the Bank of Japan's decision not to
ease policy further. USD/
Asian shares fell on Monday, with Japan's Nikkei ending the
day down 3 percent. Stocks in Europe and Wall Street eased on
Friday as earnings disappointed. MKTS/GLOB
Gold was also underpinned by weak U.S. economic data that
supported the Federal Reserve's cautious stance on higher U.S.
interest rates. The central bank's policy statement released
last week was viewed as largely dovish.
Bullion is sensitive to rising interest rates, which lift
the opportunity cost of holding non-yielding bullion, while
boosting the dollar.
INTL FCStone analyst Edward Meir said funds will continue to
sell the dollar, at least during the first half of May, buoying
gold.
"In addition, gold tipped into breakout territory on Friday,
meaning that we likely will see more technical buying ... and
perhaps see an eventual monthly high of $1,375," said Meir.
Data on Friday showed hedge funds and money managers cut
their net long position in gold futures and options in the week
to April 26.
They added to their bullish stance in COMEX silver for the
third straight week, taking it to a record high.
Silver XAG= eased 0.1 percent to $17.80, not far from a
15-month top of $17.958 reached on Friday.
PRICES AT 0642 GMT
Metal Last Change Pct chg
Spot gold 1292.96 -0.4 -0.03
Spot silver 17.8 -0.02 -0.11
Spot platinum 1071 -3.5 -0.33
Spot palladium 621.45 -3.05 -0.49
Comex gold 1295.3 4.8 0.37
Comex silver 17.855 0.036 0.2
COMEX gold and silver contracts show the
most active months