* Gold posts biggest one-day gain since May 13 on Tuesday
* Dollar steps further back from 2-month highs
(Recasts, updates prices)
By Vijaykumar Vedala
BENGALURU, June 1 (Reuters) - Gold held steady, supported by
an easing dollar and weaker Asian stocks on Wednesday, a day
after it closed higher for the first time in 10 sessions.
Asian stocks were on a weak footing on Wednesday as a slip
in crude oil prices dampened investor appetite for riskier
assets, while the recently bullish dollar stalled against the
euro and yen following a mixed bag of U.S. economic data.
MKTS/GLOB USD/ O/R
U.S. consumer spending recorded its biggest increase in more
than six years in April as households stepped up purchases of
automobiles, although other data showed an ebb in consumer
confidence in May.
Spot gold XAU= was little changed at $1,215.80 an ounce at
0645 GMT. The precious metal gained 0.8 percent on Tuesday, its
biggest single-day percentage gain since May 13.
The safe haven asset has climbed nearly 15 percent so far
this year, but has been under pressure after minutes from the
U.S. Federal Reserve's April meeting released last month boosted
expectations of an imminent rate rise.
Bullion lost about 6 percent in May, its biggest decline in
six months.
U.S. gold GCcv1 was nearly flat at $1,218.50.
"The fact that gold did not undergo another sharp selling
bout on Tuesday in light of strong U.S. macro data (and an
equally strong dollar) tells us that participants may already
have discounted a rate rise," INTL FCStone analyst Edward Meir
said in a note.
"However, we do not want to buy gold just yet, but would
rather wait for a pullback to the $1,180-$1,190 level where we
see more credible support."
An increase in U.S. rates would raise the opportunity cost
of holding gold, which does not earn interest. It would also
bolster the dollar, making gold more expensive for buyers in
other currencies.
U.S. non-farm payrolls data for May is due on Friday and a
solid reading could heighten expectations for a rate increase
this month or as early as July.
"We expect further correction as the numbers should come in
favourably for the Fed to move as early as July and so, taking
that into consideration, I think we're not done yet in the
adjustment process," said Dominic Schnider of UBS Wealth
Management in Hong Kong.
Among other precious metals, spot silver XAG= rose 0.3
percent to $16.03 per ounce.
Spot platinum XPT= and spot palladium XPD= fell 0.4
percent each to $973.74 an ounce and $543.97 per ounce,
respectively.