FUNDAMENTALS
* Spot gold rose 0.4% to $1,996.99 per ounce by 0037
GMT. U.S. gold futures gained 0.3% to $2,005.50.
* The dollar index was down 0.1%, making gold more
attractive for buyers holding other currencies.
* Dallas Fed's report on Monday showed manufacturing
activity in Texas contracted in April, highlighting the economic
toll of the Fed's rate tightening cycle.
* Although gold is considered a hedge against inflation and
economic uncertainty, higher interest rates dim the non-yielding
asset's appeal.
* The CME FedWatch tool shows that markets are pricing in a
90.5% chance of a 25-basis-point hike by the Fed at its May 2-3
meeting.
* Rising concerns that the U.S. Treasury Department could
hit its debt limit in the coming months are leading investors to
shun certain Treasury bills and pour into others as they seek
out low risk places to park cash.
* Indicative of sentiment, SPDR Gold Trust GLD, the world's
largest gold-backed exchange-traded fund, said its holdings rose
0.41% to 927.43 tonnes on Monday from 923.68 tonnes on Friday.
* Spot silver edged 0.2% higher to $25.22 per ounce,
platinum rose 0.5% to $1,087.70.
* Palladium ticked 0.1% higher to $1,536.56.
DATA/EVENTS (GMT)
0500 Japan Chain Store Sales YY March
1000 UK CBI Business Optimism Q2
1400 US Consumer Confidence April
1400 US New Home Sales-Units March
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Sherry
Jacob-Phillips)
April 25 (Reuters) - Gold prices edged higher in early
Asian trading on Tuesday, helped by a softer dollar, although
investors looked forward to further U.S. economic data duw this
week to gauge the Federal Reserve's next policy move.
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