SINGAPORE, March 29 (Reuters) - Gold clung to small
overnight gains on Tuesday to hold above a one-month low,
supported by a softer dollar and weak U.S. economic data that
dented expectations of an immediate hike in U.S. interest rates.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,221.40 an ounce
by 0033 GMT. The metal had fallen to a one-month low of
$1,208.15 on Monday, before closing the day up 0.4 percent.
* Bullion was in demand after the dollar fell on
disappointing data on the U.S. economy.
* Data on Monday showed U.S. consumer spending barely rose
in February and inflation retreated, suggesting the Federal
Reserve could remain cautious about raising interest rates this
year even as the labour market rapidly tightens.
* Following the weak data, economists slashed their
first-quarter gross domestic product growth estimates, while the
dollar fell 0.2 percent against a basket of major currencies.
* The disappointing outcome dimmed expectations for an
imminent hike in U.S. interest rates, which some Fed officials
last week said could be as early as next month if the economy
maintained its momentum.
* Last week, hawkish comments from several Fed officials put
investors on guard for the possibility of at least two rates
increases this year, triggering a widespread correction across
commodities and bolstering the dollar.
* Markets will be eyeing a speech by Fed Chair Janet Yellen
to the Economic Club of New York. She is due to speak on the
economic outlook and monetary policy at 1620 GMT on Tuesday.
* For the top stories on metals and other news, click
TOP/MTL or GOL
DATA AHEAD (GMT)
1300 U.S. S&P/Case-Shiller housing index Jan
1400 U.S. Consumer confidence Mar
1620 Federal Reserve Chair Janet Yellen speaks on U.S.
economic outlook and monetary policy before an
Economic Club of New York luncheon
PRICES AT 0033 GMT
Metal Last Change Pct chg
Spot gold 1221.4 0.75 0.06
Spot silver 15.23 0.013 0.09
Spot platinum 943.5 1.51 0.16
Spot palladium 568.3 0.8 0.14
Comex gold 1221.9 1.8 0.15
Comex silver 15.23 0.04 0.26
COMEX gold and silver contracts show the
most active months