TOKYO, June 23 (Reuters) - Gold prices steadied on Tuesday
ahead of the Federal Reserve's two-day policy meeting which
starts later in the day, with investors cautiously awaiting the
U.S. central bank's outlook on the economy.
FUNDAMENTALS
* Spot gold <XAU=> was little changed at $921.60 per ounce as
of 0002 GMT, compared to New York's notional close of $921.90.
Spot gold hit a one-month low of $917.90 on Monday as the dollar
lengthened broad gains with investors.
* The dollar gained as investors sought a safe haven <.DXY>
amid concern about the euro zone economy and jitters ahead of the
Fed meeting. A stronger dollar makes dollar-denominated assets
appear more expensive.
* U.S. gold futures for August delivery <GCQ9> inched up 0.2
percent to $922.90 per ounce. August futures <GCQ9> settled down
1.6 percent at $921 an ounce on Monday on the COMEX division of
the New York Mercantile Exchange.
* The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings fell to 1,131.24 tonnes
as of June 22, down 0.91 tonnes from the previous business day.
[]
MARKET NEWS
* Nikkei opened down 1.33 percent. []
* U.S. stocks suffered their worst one-day loss in two
months, dropping the S&P 500 back into negative territory for the
year on Monday in a broad-based sell-off, as investors
reconsidered the health of the economy. []
* Investor appetite for risk fell on Monday, driving up the
safe-haven U.S. dollar and yen and dragging down riskier
higher-yielding currencies after an outlook by the World Bank
stirred worries about global growth. []
* The World Bank said prospects for the global economy
remained "unusually uncertain" as it cut 2009 growth forecasts
for most economies, adding to concerns of a slower turnaround.
DATA EVENTS
* The following data is expected on Tuesday: <ECON>
- German GfK index for July. (0600 GMT)
- German services flash PMI for June. (0728 GMT)
- Euro zone services flash PMI for June. (0758 GMT)
- Redbook weekly U.S. retail sales for June. (1255 GMT)
- U.S. existing home sales for May. (1400 GMT)
- U.S. FHFA home price index for April. (1400 GMT)
- FOMC two-day policy meeting starts. (N/A)
- ABC U.S. weekly consumer comfort index. (2100 GMT)
RELATED NEWS
>Dollar strength presses gold down toward $920 []
>Economy forecasts glum;Germany, Japan buck trend []
>Sturdy dollar, recovery rethink hit commodities []
>Oil falls nearly 4 pct on economic outlook, dollar []
PRICES
Precious metals prices at 0008
Metal Last Change Pct chg Day ago pct MA 30 RSI
Spot gold $922.60 $0.70 +0.08% +2.85% $860.10 32
Spot silver $13.76 $0.04 +0.29% +14.86% $11.29 31
Spot plat $1163.50 $4.00 +0.34% +22.60% $948.98 32
COMEX gold $922.40 $34.20 +3.85% +2.55% $857.64 31
TOCOM gold 2,844 261 +10.10% +9.01% 2,476 25
TOCOM plat 3,593 853 +31.13% +29.95% 2,659 29
Currencies
Euro/dlr $1.385 $0.072 +5.47% +5.14%
Dlr/yen 95.53 5.15 +5.70% +7.43%
(Reporting by Chikako Mogi)
