SINGAPORE, Sept 22 (Reuters) - Gold was steady on Tuesday and trading below a near three-week high, retaining overnight losses as investors propped up equities and the U.S. dollar, denting the metal's appeal as a hedge.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,133.35 an ounce by 0042 GMT, after a 0.5 percent drop on Monday. The metal had climbed to a near three-week high of $1,141.50 last week.
* Wall Street and European stocks rebounded more than 1 percent on Monday in rallies that, along with robust gains in the dollar and global oil markets, showed investors were tilting toward riskier assets. MKTS/GLOB
* The drop in bullion prices comes after sharp gains last week following the Federal Reserve's move to keep U.S. interest rates unchanged near zero. Higher rates would have reduced demand for non-interest-paying gold.
* Despite the gains, bullion investors continue to fret over the timing of an eventual rate hike.
* Comments from a top Fed official signalled that the U.S. central bank could hike rates later this year.
* Atlanta Fed President Dennis Lockhart said on Monday last week's decision was largely a "risk management" exercise to be sure recent market volatility would not become a drag on the U.S. economy. He said he still expects the Fed to hike rates later this year.
* The market is now waiting to hear from Fed Chair Janet Yellen herself, who is due to speak on Thursday. Yellen is facing growing pressure from her colleagues and global investors to clarify where the world's biggest central bank is heading and how it is making its decisions. ID:nL1N11R1HC
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.53 percent to 674.61 tonnes on Monday, reflective of investor sentiment.
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* The greenback hovered at its highest in nearly two weeks early on Tuesday as dollar bulls appeared to recover from their disappointment over the Fed's decision last week to delay a hike in interest rates. USD/
DATA AHEAD (GMT)
1300 U.S. Monthly home price index Jul
1400 Euro zone Consumer confidence Sep
1400 U.S. Richmond Fed composite index Sep
PRICES AT 0042 GMT Metal
Last
Change Pct chg
Spot gold
1133.35
0.25
0.02 Spot silver
15.18
0.02
0.13 Spot platinum
969.55
3.55
0.37 Spot palladium
611.92
0.92
0.15 Comex gold
1133.1
0.3
0.03 Comex silver
15.19 -0.031
-0.2 Euro
1.1191
DXY
95.882
COMEX gold and silver contracts show the most active months