July 23 (Reuters) - Gold prices fell in early Asian trade on Tuesday as the dollar rose to a near one-week high on expectation of a smaller interest rate cut by the U.S. Federal Reserve at the end of this month.
FUNDAMENTALS
* Spot gold XAU= was down 0.5% at $1,417.11 per ounce as of 0120 GMT.
* U.S. gold futures GCv1 slipped 0.5% to $1,419.30 an ounce.
* The dollar index .DXY gained 0.1% to a near one-week high, making gold expensive for holders of other currencies. USD/
* The U.S. central bank is widely expected to lower its interest rate target range of 2.25%-2.50% by 25 basis points at a meeting ending July 31, but expectations for a larger 50-basis point cut have waxed and waned due to mixed signals from Fed policymakers.
* The global march towards lower interest rates reaches Europe this week with the European Central Bank expected at least to signal easier monetary policy. Expectations of policy easing by major central banks such as the Fed propped up global stocks on Tuesday. MKTS/GLOB
* Meanwhile, Sterling was on the back foot on Tuesday as investors worried Boris Johnson, the front runner to become the UK's next prime minister, would trigger a "hard Brexit" from the European Union. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.57% to 825.18 tonnes on Monday from 820.49 tonnes on Friday. GOL/ETF
DATA AHEAD
* 1400
US
Existing Home Sales
June
* 1400
EU
Consumer Confid. Flash July