* Technical support helps bullion
* Silver on track for biggest monthly decline since Sept
2014
(Updates prices)
By Vijaykumar Vedala
BENGALURU, May 31 (Reuters) - Gold edged up on Tuesday after
falling to a three-and-a-half month low in the prior session but
the yellow metal remained on track for its biggest monthly
decline since November on the back of broad strength in the
dollar.
Bullion got some support earlier in the session as Asian
stocks wobbled and were headed for a monthly loss. MKTS/GLOB
Spot gold XAU= was up 0.6 percent at $1,212.46 per ounce
as of 0630 GMT. On Monday, the safe-haven asset fell as much as
1 percent to $1,199.60 an ounce, its lowest since Feb. 17.
Spot silver XAG= was also headed for its biggest monthly
loss since September 2014, down 9.8 pct, which is also its first
such decline this year.
"There is pessimism for gold prices at the moment. The
pressure is not done yet... For the coming two days, I still
think the bearish sentiment will dominate," said Mark To, head
of research at Hong Kong's Wing Fung Financial Group.
The safe-haven asset has been under pressure over the past
couple of weeks as senior U.S. central bank officials, including
Fed chief Janet Yellen, indicated that a rate rise may be on the
cards sooner rather than later.
St. Louis Fed President James Bullard said on Monday global
markets appear to be "well-prepared" for a summer interest rate
hike from the Fed, although he did not specify a date for the
policy move.
Gold has fallen about 6.3 percent so far in May, its biggest
monthly fall since November.
A bearish target at $1,175 per ounce has been aborted for
spot gold, as it managed to hover above a support at $1,206,
Reuters technical analyst Wang Tao said.
"The precious complex continues to be under pressure albeit
with some positive technical support now flowing through," said
MKS Group trader James Gardiner.
The dollar hovered near its highest in two months against a
basket of currencies on Tuesday on growing expectations of an
imminent U.S. rate hike. USD/
U.S. non-farm payrolls data for May is due on Friday and a
solid reading could heighten expectations for a June rate rise.
Investors will also be looking out for trading cues from
data on U.S. personal income and consumer confidence, due later
in the day.
Among other precious metals, spot platinum XPT= and spot
palladium XPD= were set to notch their biggest monthly
declines since November.