* Likely further monetary easing would lift gold
* Gold has gained 6 pct this year
* Coming up: euro zone unemployment rate at 1000 GMT
(Updates prices)
By Manolo Serapio Jr
MANILA, Feb 2 (Reuters) - Gold edged to a three-month high
on Tuesday as weak global manufacturing activity underscored the
challenges for the world economy, pushing investors towards
safe-haven assets.
Increased volatility in other assets has benefitted gold and
it could see more gains as global central banks may be forced
into easing monetary policy further this year to spur growth.
With rates close to zero, the "only option is to move either
towards zero or negative rates as the Japanese and selected
European countries are already doing in a desperate attempt to
force banks to lend", INTL FCStone analyst Edward Meir wrote to
clients.
"Whatever the case, this should be constructive for gold."
Spot gold XAU= touched $1,130.11 an ounce, its strongest
since Nov. 3, and was trading down 0.3 percent at $1,125.36 by
0634 GMT.
A break above $1,136 could lift gold towards $1,157, a level
reached in late October, said ScotiaMocatta technical analysts.
U.S. gold for April delivery GCcv1 was off 0.2 percent at
$1,126 an ounce.
Reflecting growing confidence in gold, holdings of SPDR Gold
Trust GLD , the world's largest gold-backed exchange-traded
fund, rose to 21.9 million ounces on Monday, the most since Nov.
3. GOL/ETF
Global manufacturing expansion accelerated slightly but
remained weak at the start of 2016 as faster growth in developed
markets failed to offset a contraction in emerging economies. In
China, a gauge of factory activity fell to its lowest since
mid-2012.
The U.S. economy could suffer if recent volatility in
financial markets persists and signals a slowdown in the global
economy, Federal Reserve Vice Chairman Stanley Fischer said.
Gold is typically the asset of choice in times of
uncertainty. It posted its best monthly jump in a year in
January, and has gained 6 percent so far in 2016, after falling
10.4 percent last year.
The Fed's statement last week that it will closely monitor
the global economy and financial markets lifted gold to near
$1,130, as it underlined expectations that U.S. policymakers may
take it slow in raising interest rates this year.
"Weaker macro numbers out of the U.S. are also increasing
the odds that the Fed's December move could have been an
outlier, forced onto a central bank that basically had to move
after promising to do so for much of the last year," said Meir
who sees only one U.S. rate hike this year.
Spot platinum XPT= fell 1.1 percent to $860.10 an ounce,
palladium XPD= slipped 0.6 percent to $497.30 and silver
XAG= dropped 0.3 percent to $14.28.