* Asian stocks touch 2-1/2-month peak
* U.S. Fed rate hike back in focus
(Updates prices)
By Sethuraman N R
BENGALURU, July 12 (Reuters) - Gold on Tuesday held near
lows touched in the previous session as Asian stocks rallied and
markets assessed whether the latest U.S. jobs data has boosted
the prospects for an interest rate hike by the U.S. Federal
Reserve.
Spot gold XAU= was little changed at $1,354.20 per ounce
by 0640 GMT. It fell 0.8 percent on Monday, its biggest decline
in nearly two weeks, to close at $1,354.85.
U.S. gold GCcv1 was also little changed at $1,355.30 an
ounce.
Asian stocks hit a 2-1/2-month peak on Tuesday, a day after
Wall Street shares rose to a record high on a combination of
upbeat U.S. data and expectations of more stimulus from global
policymakers. MKTS/GLOB
Gold was coming under pressure after strong non-farm
payrolls data that had boosted some expectations for a U.S. rate
hike, said Mark To, head of research at Hong Kong's Wing Fung
Financial Group.
"In the near-term there should be some resistance for
prices," To said. "However, there should not be much downward
pressure after the pullback as the U.S. Fed will not raise
interest rates anytime soon."
Kansas City Federal Reserve President Esther George said on
Monday U.S. interest rates are too low and signalled she could
be ready to restart her push for rate hikes within the Fed's
rate-setting committee.
Lower rates tend to boost gold prices because they cut the
opportunity cost of holding non-yielding bullion while weighing
on the dollar, in which it is priced.
"Not too long ago, gold prices would have withered on
prospects of higher stock prices, but not this time around;
investors are thinking that the spate of monetary easing is
likely to persist for some time to come, keeping both gold and
equities fairly well supported," said INTL FCStone analyst
Edward Meir.
The European Central Bank will not ease monetary policy any
further at its meeting next week, according to an overwhelming
majority of respondents in a Reuters poll of euro money market
traders.
Gold miners expanded the global hedge book by another 50
tonnes in the first quarter after hedging on a net basis for a
second straight year in 2015, an industry report showed on
Monday.
Silver XAG= was up 0.4 pct at $20.33 an ounce.
Platinum XPT= , which rose to a 13-month high of $1,104.10
in the previous session, fell for the first time in two weeks.
It was down 0.6 percent at $1,092.50 an ounce.
Palladium XPD= was down 0.5 percent at $618.35 per ounce.