MANILA, Aug 5 (Reuters) - Gold steadied not far from a
5-1/2-year low early on Wednesday after comments from a Federal
Reserve official backed investor expectations that the U.S.
central bank would hike interest rates as early as next month.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,086.35 an ounce
by 0037 GMT. Bullion has stayed largely below $1,100 since
breaching that key support level in a late July rout that pulled
the metal to as low as $1,077, its weakest since February 2010.
* U.S. gold for delivery in December GCcv1 slipped 0.4
percent to $1,086.20 an ounce.
* Atlanta Federal Reserve President Dennis Lockhart has said
it would take "significant deterioration" in the U.S. economy
for him to not support a rate hike in September, according to
the Wall Street Journal. ID:nL1N10F25P
* Gold, an asset that does not earn interest, has taken a
hit given rising risks of a U.S. rate hike. The Fed looks intent
on lifting rates this year for the first time since 2006 as the
U.S. economy strengthens, particularly its labour market.
* New orders for U.S. factory goods rebounded strongly in
June on robust demand for transportation equipment and other
goods, a hopeful sign for the struggling manufacturing sector.
ID:nL1N10F1GD
* Holdings of the SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, dropped further on Tuesday to
21.56 million ounces, the lowest since September 2008.
* Gold sales at the Perth Mint climbed to a nine-month high
in July after a slide in prices of the precious metal to their
lowest since 2010 drew buyers. ID:nL3N10F33O
* For the top stories on metals and other news, click
TOP/MTL or GOL/
MARKET NEWS
* The dollar stood tall against the yen and euro after Fed's
Lockhart expressed his support for an interest rate hike in
September. USD/
* Asian shares markets dipped as the mounting risks of a
hike in U.S. interest rates as early as next month lifted the
dollar and sovereign bond yields, pressuring currencies across
the region. MKTS/GLOB
DATA AHEAD (GMT)
0145 China Caixin services PMI July
0750 France Markit services PMI July
0755 Germany Markit services PMI July
0800 Euro zone Markit services PMI July
0900 Euro zone Retail sales June
1215 U.S. ADP national employment July
1230 U.S. International trade June
1400 U.S. ISM non-manufacturing PMI July