Jan 4 (Reuters) - Gold prices eased on Wednesday after hitting a three-week high in the previous session, with the U.S. dollar hovering near 14-year peaks against a basket of major currencies.
FUNDAMENTALS
* Spot gold XAU= was down 0.2 percent at $1,156.96 an ounce by 0051 GMT. It marked its highest since Dec. 14 on Tuesday at $1,163.52.
* U.S. gold futures GCcv1 fell 0.4 percent to $1,157.70 per ounce.
* The dollar index .DXY , which measures the greenback against a basket of currencies, was at 103.34 after climbing to 103.82 the previous day, its strongest since December 2002.
* Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, dropped 1.01 percent to 813.87 tonnes on Tuesday. GOL/ETF
* U.S. factory activity accelerated to a two-year high in December amid a surge in new orders and rapidly rising raw material prices, indicating that some of the drag on manufacturing from prolonged dollar strength and a slump in oil prices was fading. Other data on Tuesday showed U.S. construction spending hit a 10-1/2-year high in November, providing a boost to a fourth-quarter economic growth estimate. The reports suggested President-elect Donald Trump would inherit a strong economy, with a labour market that is near full employment, from the Obama administration.
* China's factory activity picked up more than expected in December as demand accelerated, with output reaching a near six-year high, a private business survey showed on Tuesday, giving the manufacturing sector a solid boost heading into 2017. For the top stories on metals and other news, click TOP/MTL or GOL
MARKET REPORTS
* The U.S. dollar held near 14-year peaks on Wednesday as an abundance of upbeat global economic data boosted Wall Street and signs of quickening inflation dented fixed-income debt. MKTS/GLOB
* Oil prices edged up on Wednesday, recovering some losses from the previous day. O/R
DATA AHEAD (GMT)
Euro Zone 0900 Markit Service Final PMI
December
Euro Zone 1000 Inflation Flash
December
U.S.
1200 Mortgage Market index weekly
U.S.
1355 Redbook weekly
U.S.
1445 ISM-New York index
December
U.S.
1830 All car, truck sales
December