SINGAPORE, Oct 21 (Reuters) - Gold clung to overnight gains
on Wednesday, supported by weakness in the dollar and global
equities, as investors awaited clues on when the Federal Reserve
will raise U.S. rates.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,176.40 an ounce
by 0038 GMT. The metal gained 0.5 percent in the previous
session, snapping a three-day losing streak.
* Bullion gained as the euro rose against the dollar on
Tuesday, bolstered by solid regional economic data and comments
from European Central Bank (ECB) officials suggesting further
monetary easing may not be imminent. USD/
* A weaker greenback makes dollar-denominated gold cheaper
for holders of other currencies, while also increasing its
appeal as a hedge.
* Weakness in equity markets also triggered some safe-haven
bids for gold. Wall Street ended lower on Tuesday on soft
corporate earnings, while Asian equities got off to a sluggish
start on Wednesday. MKTS/GLOB
* Despite gains, gold was still trading below a 3-1/2-month
high hit last week.
* With gold now back at its 200-day moving average near
$1,175, some expect more gains though trading could be quiet
ahead of the ECB policy meet on Thursday and Fed meet next week.
* Investors will be closely monitoring U.S. data and
comments from Fed officials on monetary policy to gauge when the
U.S. central bank could raise rates for the first time in nearly
a decade.
* Market expectations for a rate hike have shifted to next
year in recent weeks amid concerns about the global economy,
although some haven't completely ruled out a hike in December.
* Uncertainty over the timing of a U.S. rate hike has
weighed on gold, a non-interest-paying asset.
* Gold prices, which hit a near four-month high of $1,190.63
an ounce last week, are expected to slip to $1,159.88 by October
2016, delegates to the London Bullion Market Association's
annual gathering predicted on Tuesday. urn:newsml:reuters.com:*:nL8N12K2L
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TOP/MTL or GOL
DATA AHEAD (GMT)
No major data due on Wednesday
PRICES AT 0038 GMT
Metal Last Change Pct chg
Spot gold 1176.4 0.7 0.06
Spot silver 15.9 0.02 0.13
Spot platinum 1020.1 4.86 0.48
Spot palladium 691.77 0.27 0.04
Comex gold 1176.6 -0.9 -0.08
Comex silver 15.895 -0.022 -0.14
COMEX gold and silver contracts show the
most active months