MANILA, Jan 26 (Reuters) - Gold steadied near a one-week
high early on Tuesday, supported by expectations that a wobbly
global economy may limit the opportunity for the U.S. Federal
Reserve to raise interest rates this year.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,107.76 an ounce by 0035
GMT, just off an early peak of $1,108.81. The metal touched
$1,109.20 on Jan. 20, a 1-1/2-week high.
* U.S. gold for February delivery GCcv1 rose 0.3 percent
to $1,108.50 an ounce.
* The Federal Open Market Committee starts a two-day policy
meeting later on Tuesday, and is widely expected to leave its
federal funds rate unchanged at 0.25-0.50 percent.
* But the probability of another rate increase at the next
Fed meeting in March has eased, with some analysts seeing it
postponed to later in the year, amid a slowing global economy.
* That puts downward pressure on the dollar and benefits
gold, which has gained more than 4 percent so far this year
after declining in 2015 for a third year in a row.
* But a Reuters poll of analysts showed gold is tipped to
fall for a fourth straight year in 2016, although some lost
ground may be recovered next year. Bullion is forecast to
average at $1,118 an ounce, the lowest annual average since
2009.
* Eldorado Gold Corp ELD.TO said it expects to write down
the value of its assets in Greece by $1.2 billion-$1.6 billion,
after the Canadian miner suspended majority of mine construction
and development in the European country.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian shares look set to retreat and oil prices to resume
their descent after investors used rebounds over the last two
days to offload risk assets as fears of a global economic
slowdown show no sign of abating. MKTS/GLOB
* The dollar held close to recent trading ranges with
investors cautiously awaiting the outcome of the Federal Reserve
meeting. USD/
DATA/EVENT AHEAD (GMT)
1400 U.S. Monthly home price index Nov
1400 U.S. S&P/Case-Shiller housing index Nov
1500 U.S. Consumer confidence Jan
Federal Open Market Committee starts two-day policy meeting