Gold rose early on Wednesday, holding gains from the previous session as the dollar fell, with investors evaluating the likelihood of a Federal Reserve rate hike after a weak U.S. productivity report.

FUNDAMENTALS

* Spot gold had risen 0.4 percent to $1,346.18 an ounce by 0107 GMT. Bullion ended up 0.4 % on Tuesday.

* U.S. gold was up 0.4 % at $1,352.10 an ounce.

 * Asian shares held near one-year highs on Wednesday as investors pared expectations slightly for a Fed interest rate increase following weak U.S. productivity data, which drove the dollar and Treasury yields lower.Visit Us www.ripplesadvisoryx.com/freetrial.php or Get Free Trials Just Give One Missed Call @98-27-80-80-90.

 * The dollar index, which gauges the greenback against a basket of six major currencies, fell 0.4 % to 95.831 .

* U.S. worker productivity fell for the third straight quarter in the spring this year, suggesting that corporate profits may continue to decline and wage growth may remain sluggish.

* Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, dropped 0.12 percent to 972.62 tonnes on Tuesday.