SINGAPORE, Dec 15 (Reuters) - Gold was hurting from overnight losses on Tuesday and the metal looked vulnerable to a drop back to multi-year lows on expectations of a U.S. rate hike later this week.
FUNDAMENTALS
* Spot gold XAU= ticked up 0.1 percent to $1,064.12 an ounce by 0037 GMT, after a 1.1 percent slide on Monday. The price is only about $20 short of a near six-year low of $1,045.85 reached earlier this month.
* In its last policy meeting of the year that kicks off later on Tuesday, the Federal Reserve is widely expected to hike U.S. interest rates for the first time since June 2006.
* The U.S. central bank is expected to raise rates by a quarter of a percentage point at the end of its two-day meeting on Wednesday.
* Higher rates are expected to hurt demand for non-interest-paying bullion, while boosting the dollar.
* Gold has already slid 10 percent for the year, its third straight annual decline, in anticipation of higher rates. And traders and analysts expect further declines. urn:newsml:reuters.com:*:nL3N13X2BO
* Assets in the top gold exchange traded fund, SPDR Gold Trust GLD , are at their lowest since September 2008.
* Gold wasn't getting much support from the physical markets either.
* Gold prices in India swung to a discount for the first time in a month on Monday as jewellers and dealers in the world's second-biggest consumer postponed purchases ahead of the Fed meeting. urn:newsml:reuters.com:*:nL3N1432XC
* Among other precious metals, silver XAG= steadied at $13.71 an ounce after a six-day losing streak. It had dropped to $13.60 on Monday, its lowest since August 2009.
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* Global equity markets swung between gains and losses on Monday, as volatile oil prices rebounded from multi-year lows. The dollar edged higher against a basket of major currencies.
DATA AHEAD (GMT)
1000 Germany ZEW economic sentiment Dec
1000 Euro zone Employment Q3
1330 U.S. Consumer prices Nov
1330 U.S. New York Fed manufacturing Dec
1500 U.S. NAHB housing market index Dec
Federal Open Market Committee starts two-day policy meeting
PRICES AT 0037 GMT Metal
Last
Change Pct chg
Spot gold
1064.12
1.52
0.14 Spot silver
13.71
0.006
0.04 Spot platinum
852.3
3.65
0.43 Spot palladium
548
3.55
0.65 Comex gold
1064
0.6
0.06 Comex silver
13.69 -0.005
-0.04
COMEX gold and silver contracts show the most active months