MANILA, Aug 17 (Reuters) - Gold was steady on Monday after
pulling back from a three-week high hit last week, as more
upbeat U.S. economic data strengthened the dollar and the case
for the Federal Reserve to hike interest rates next month.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,114.05 an ounce by 0038
GMT. The metal has come off Thursday's three-week peak of
$1,126.31, though still managed to snap a seven-week losing run.
* U.S. gold for December delivery GCcv1 was little changed
at $1,113.80 an ounce.
* China's devaluation of its yuan last week helped gold
recover some lost ground, but bullion has pared some of those
gains as fears abated that Beijing would pursue a sustained
depreciation of its currency.
* That has put the market focus back on a looming U.S.
rates increase. U.S. industrial output advanced at its strongest
pace in eight months in July in another bullish sign for
third-quarter economic growth that boosts the prospects of a
rate hike next month. ID:nL1N10P0Q2
* Minutes from the Fed's July 28-29 meeting due on Wednesday
will offer vital clues about its plan to hike rates for the
first time since 2006, with rebounding retail sales, solid jobs
growth and rising construction all pointing to next month as
gross domestic product stays above trend for the world's largest
economy. ID:nL5N10P2UU
* Hedge fund Paulson & Co cut its stake in the world's
biggest gold-backed exchange-traded fund in the second quarter
of 2015, after holding it unchanged for six straight quarters,
just before prices took a tumble. ID:nL1N10P2EP
* Hedge funds and money managers sharply cut their net short
position in COMEX gold contracts in the week ended Aug. 11, as
the surprise devaluation of China's currency lifted bullion
prices further above a 5-1/2-year low, U.S. Commodity Futures
Trading Commission data showed. ID:nL1N10P23F
* In Greece, Prime Minister Alexis Tsipras faced the widest
rebellion yet from his leftist lawmakers as parliament approved
a new bailout programme, forcing him to consider a confidence
vote that could pave the way for early elections.
ID:nL5N10P15H
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MARKET NEWS
* The dollar edged higher as traders looked to the prospects
of a U.S. rate hike next month. USD/
* Asian stocks were little changed as investors' nerves
continued to settle after China's surprise yuan devaluation last
week. MKTS/GLOB
DATA AHEAD (GMT)
0900 Euro zone Eurostat trade Jun
1230 U.S. New York Fed manufacturing Aug
1400 U.S. NAHB housing market index Aug