SINGAPORE, Oct 20 (Reuters) - Gold steadied after three days of losses on Tuesday but remained under pressure as the dollar was well bid on expectations the Federal Reserve could still raise U.S. rates this year.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,170.06 an ounce by 0029 GMT, after losing about 1.2 percent in the past three sessions.
* The dollar climbed .DXY to its highest in over a week on Monday against a basket of major currencies, weighing on gold. A stronger greenback makes gold expensive for holders of other currencies.
* Gold touched its highest level in 3-1/2 months last week on bets the Fed will not raise U.S. rates amid concerns about the global economy. But the rally lost steam after robust U.S. economic data, and as gold failed to surge past the key $1,200 level.
* Despite strong headwinds from overseas that are holding down U.S. inflation, the Fed should soon begin to raise interest rates to slow down economic growth before it becomes unsustainable, San Francisco Fed President John Williams said on Monday. urn:newsml:reuters.com:*:nL1N12J1MR
* Investors worldwide have expressed frustration over the mixed messages from the U.S. central bank in recent weeks. Fed Chair Janet Yellen and other officials have said they expect a rate hike will be needed by the end of this year, but two Fed governors last week urged caution. The Fed has kept interest rates near zero for nearly seven years.
* The Fed holds two more policy meets this year: next week and in December. Market expectations for a rate hike have shifted to next year in recent weeks.
* Elsewhere, assets in SPDR Gold Trust GLD , the top gold-backed exchange-traded fund, rose 0.51 percent to 697.32 tonnes on Monday.
* New liquidity rules for banks in the European Union could raise costs for those trading gold by up to 300 percent, forcing them to withdraw from the market, the head of the London Bullion Association said. urn:newsml:reuters.com:*:nL8N12J3CS
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* Asian equities dipped early on Tuesday after commodity prices slid in the wake of China growth woes and dampened risk sentiment, while the euro hovered near a 10-day low ahead of a European Central Bank meeting that could open the door for more monetary easing. MKTS/GLOB
DATA AHEAD (GMT)
0600 Germany Producer prices Sep
0800 Euro zone Current account Aug
1230 U.S. Housing starts Sep
1230 U.S. Building permits Sep
PRICES AT 0029 GMT
Metal
Last
Change
Pct chg
Spot gold
1170.06
-0.24
-0.02 Spot silver
15.77
-0.05
-0.32 Spot platinum
1009.7
0.7
0.07 Spot palladium
682.1
-0.4
-0.06 Comex gold
1170.2
-2.6
-0.22 Comex silver
15.805
-0.036
-0.23
COMEX gold and silver contracts show the most active months