* Mixed U.S. data creates uncertainty for gold - trader
* Possible U.S. interest rate hikes in focus
* Physical market remains weak - StanChart
(updates prices)
By A. Ananthalakshmi
SINGAPORE, April 5 (Reuters) - Gold jumped 1 percent on
Tuesday following a two-day decline, as Asian stocks slid on
weak oil prices and mixed views on the outlook for Federal
Reserve monetary policy.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS lost over 1 percent, while Tokyo's Nikkei
dropped 2.4 percent to an eight-week closing low. MKTS/GLOB
Spot gold XAU= rose to a session-high of $1,227.60 an
ounce before paring some gains to trade up 0.9 percent at
$1,225.35 by 0644 GMT. It had dropped 1.4 percent in the past
two sessions.
"We are getting mixed data out of the U.S. and
somewhat-contradictory comments from the Fed. That is creating
some uncertainty for gold," said a Singapore-based trader,
adding that the metal was seeing some technical support near its
50-day moving average near $1,215 an ounce.
U.S. data on Monday showed that new orders for manufactured
goods dropped in February, while business spending on capital
goods was much weaker than initially believed.
This follows a robust U.S. jobs report last week that showed
non-farm payrolls rising by a better-than-expected 215,000,
stoking speculation that the Fed could raise rates soon.
Gold had posted its biggest quarterly rise in nearly 30
years in the March quarter, rallying 16 percent as expectations
faded that the Fed would move to normalize interest rates due to
concerns over the global economy.
The U.S. central bank raised rates in December for the first
time in nearly a decade.
Fed Chair Janet Yellen said last week that the U.S. central
bank would proceed cautiously with rate increases.
But Boston Federal Reserve President Eric Rosengren said on
Monday it was "surprising" that futures markets currently imply
only one or no interest rate hikes this year, a prediction he
said could prove "too pessimistic".
The metal is highly exposed to rising rates, which lift the
opportunity cost of holding non-yielding assets, while boosting
the dollar.
Analysts warned that gold prices could be undermined by
outflows from bullion funds and soft physical demand.
Assets of SPDR Gold Trust GLD , the top gold-backed
exchange-traded fund, fell 0.29 percent to 815.72 tonnes on
Monday. Last week, the fund experienced its first net weekly
outflow this year, after climbing to its highest in over two
years in March. GOL/ETF
Elsewhere, India's gold imports in February fell 34 percent,
news agency NewsRise Financial reported on Monday, citing a
government official. GOL/AS
"The physical market remains weak, with India trading at a
discount and a modest response from China, and in our view, the
current floor looks to be soft, implying better entry levels
could be in the offing," Standard Chartered (LON:STAN) said in a note.
PRICES AT 0644 GMT
Metal Last Change Pct chg
Spot gold 1225.35 10.7 0.88
Spot silver 15.075 0.205 1.38
Spot platinum 947 8 0.85
Spot palladium 550.72 2.22 0.4
Comex gold 1227.2 7.9 0.65
Comex silver 15.08 0.136 0.91
COMEX gold and silver contracts show the
most active months