BENGALURU, May 30 (Reuters) - Gold fell to its lowest in
over three months early on Monday as the dollar hit a one-month
high against the yen after U.S. Federal Reserve chief Janet
Yellen said the central bank could raise interest rates in the
coming months.
FUNDAMENTALS
* Spot gold XAU= had dropped 0.5 percent to $1,205.70 per
ounce by 0044 GMT. Bullion touched a low of $1205.50 earlier in
the session, its lowest since Feb. 22.
* U.S. gold GCcv1 was down 0.7 percent at $1,205.50.
* The Fed should raise interest rates "in the coming months"
if the economy picks up as expected and jobs continue to be
generated, Yellen said on Friday, bolstering the case for a rate
increase in June or July.
* This week will provide investors with clues as to how far
the Fed is from its next interest rate hike and whether the
European Central Bank will see out the year without easing its
monetary policy again.
* The dollar hit a one-month high against the yen early on
Monday and stood tall against other peers after Yellen's
comments. USD/
* Hedge funds and money managers cut their bullish bets in
U.S. gold futures and options to their lowest in almost two
months after the Fed indicated it could raise interest raise
rates as early as June, data showed on Friday.
* U.S. economic growth slowed in the first quarter although
not as sharply as initially thought, as a surge in home building
and steady inventory accumulation partially offset the drag from
a steep decline in business investment.
* The recent flow of gold from Britain via Switzerland to
Asia went into reverse in March and April after a shift in
expectations for U.S. interest rate hikes boosted investment in
London, Swiss customs data shows.
* Kumtor Operating Company, part of Canada's Centerra Gold
CG.TO , will be forced to halt operations at the Kumtor gold
mine unless it receives environmental permits to continue beyond
June, it said on Friday.
* Gold output in Australia, the world's second biggest
producer, slipped 2 percent in the first quarter, due in part to
mining of lesser grade ores during a period of higher bullion
prices, a survey released on Sunday showed.
* For the top stories on metals and other news, click
TOP/MTL or GOL
DATA AHEAD (GMT)
0530 France detailed GDP Q1
0600 Germany import prices Apr
0645 France consumer spending Apr
0900 Euro zone business climate May
1200 Germany consumer prices May