MANILA, Aug 25 (Reuters) - Gold steadied below a seven-week
high early on Tuesday as the dollar regained some lost ground
versus a basket of currencies while investors waited to see if
there would be a second day sell-off in Chinese stocks.
FUNDAMENTALS
* Spot gold XAU= was off 0.1 percent at $1,153.56 an ounce
by 0035 GMT. The precious metal closed lower on Monday after a
five-day rally that lifted it to $1,168.40 on Friday, its
loftiest since July 7.
* U.S. gold for December delivery GCcv1 was flat at
$1,153.50 an ounce.
* Asian stocks looked vulnerable to another sell-off, with
investors gripped by fears of a hard landing for the Chinese
economy, the world's most important growth engine. MKTS/GLOB
* Japan's Nikkei .N225 index fell 3.8 percent to six-month
lows while the MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS hit fresh three-year lows.
* That bodes well for gold, with increased uncertainty
likely to lift investor appetite for safe-haven assets.
* Gold was among the least bruised by Monday's sell off,
dropping half a percent versus a 6 percent slide in Brent crude
LCOc1 and a 2 percent decline in copper CMCU3 .
* A near-9 percent dive in China shares sent world stocks
and commodity prices tumbling on Monday.
* Atlanta Fed President Dennis Lockhart said that the
Federal Reserve will likely begin raising rates "sometime this
year," but that the steep drop in oil prices clouds the
inflation outlook. Two weeks ago, Lockhart said he was "very
disposed" to a rate hike in September.
* A dollar slump and a China-fuelled rout in equities and
industrial commodities has propelled gold to seven-week highs,
but bulls are still wary of a wholesale plunge into the market.
* Spot palladium XPD= extended losses, falling 2.1 percent
to $558.75 an ounce, its lowest since July 2012.
* For the top stories on metals and other news, click
MARKET NEWS
* The dollar rose 0.3 percent against a basket of major
currencies .DXY after tumbling nearly percent on Monday in its
deepest retreat since 2011. USD/
DATA AHEAD (GMT)
0600 Germany Detailed GDP Q2
0800 Germany Ifo business climate Aug
1300 U.S. Monthly home price index Jun
1300 U.S. S&P/Case-Shiller housing index Jun
1345 U.S. Markit services PMI flash Aug
1400 U.S. Consumer confidence Aug
1400 U.S. New home sales Jul