MANILA, Aug 27 (Reuters) - Gold steadied early on Thursday after suffering its biggest fall in five weeks the session before as Wall Street rallied, while comments from a top Federal Reserve official that a U.S. rate hike next month looks "less compelling" could support sentiment.
New York Fed President William Dudley said the prospect of a September rate rise seems less appropriate given the threat posed to the U.S. economy by recent market turmoil. ID:nL1N11110H
FUNDAMENTALS
* Spot gold XAU= was flat at $1,125.06 an ounce by 0034 GMT, after dropping 1.3 percent on Wednesday, its steepest decline since July 20.
* Bullion fell to a one-week low of $1,117.35 overnight, taking its losses this week to around 3 percent.
* U.S. gold for December delivery GCcv1 was little changed at $1,124.70 an ounce.
* A gauge of U.S. business investment plans recorded its largest increase in just over a year in July, buoying the dollar and dragging gold lower on Wednesday. Gold has now dropped nearly 4 percent from a seven-week high reached on Aug. 21.
* Investors are also keeping an eye on Chinese markets after wild swings this week that fueled a global rout. On Wednesday, China's key indexes ended down for a fifth straight session after swinging more than 3 percent in both directions in extreme volatility. .SS
* South Africa's mining industry, unions and the government have committed to a broad plan to stem job losses, including boosting platinum by promoting the metal as a central bank reserve asset. ID:nL5N1111N0
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* Asian stocks rose as a sharp rebound on Wall Street helped soothe investors' tattered nerves, while the dollar rallied as risk aversion eased. MKTS/GLOB
DATA AHEAD (GMT)
0600 Germany
Import prices
Jul
0645 France
Business climate
Aug
1230 U.S.
GDP Preliminary
Q2
1230 U.S.
Weekly jobless claims
1400 U.S.
Pending homes sales
Jul