BENGALURU, May 24 (Reuters) - Gold slipped in early trade on
Tuesday to trade near a 3-1/2 week low hit a day earlier, as
prices remained under pressure on expectations that the U.S.
Federal Reserve will increase interest rates as early as June.
FUNDAMENTALS
* Spot gold XAU= edged down 0.1 percent to $1,247.30 per
ounce by 0056 GMT. The metal fell to $1,242.63 an ounce, the
lowest since April 28 on Monday.
* U.S. gold futures GCcv1 dipped 0.3 percent to $1,248 per
ounce early on Tuesday
* San Francisco Fed President John Williams said the central
bank is on track to hike rates in June or July despite risks
such as a "Brexit" vote, and will continue with even more
increases next year given U.S. economic strength, a top Fed
official said on Monday.
* U.S. rates being kept too low for too long could cause
financial instability in future and stronger market expectations
for a rate rise are "probably good", St. Louis Federal Reserve
President James Bullard said on Monday.
* Goldman Sachs (NYSE:GS) economists said on Monday they estimated a
35 percent chance the Federal Reserve would raise its target on
the federal funds rate at its June 14-15 policy meeting.
* Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.38 percent to 872.52
tonnes on Monday. GOL/ETF
* The dollar index held steady and the greenback was firm at
109.260 yen JPY= , having fallen to as low as 109.120
overnight.
* Russia's largest gold producer, Polyus PLZL.MM , has
evacuated 89 out of 153 of its miners blocked after a landslide
at the Vostochny pit of its Olimpiada mine in Siberia, the
company said.
* The Fed's policymakers are scheduled to speak this week
and are expected to back the case for a rate hike within months.
Fed Chair Janet Yellen will be at a panel event hosted by
Harvard University on Friday. For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian shares were nearly flat in early trading on Tuesday,
while MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS did not stray far from its previous close, after
Wall Street closed with modest losses overnight. MKTS/GLOB
Day ahead (GMT)
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