Gold held steady early on Tuesday after recovering from one-week lows hit the day before, with the dollar edging down and investors using the correction in prices to hunt for bargains.

 

FUNDAMENTALS

* Spot gold was mostly unchanged at $1,335.82 an ounce by 0104 GMT. Bullion touched its lowest since July 29 at $1,329.55 on Monday.

* U.S. gold was nearly flat at $1,341.40 an ounce.

* The dollar index, which gauges the greenback against a basket of six major currencies, slipped as much as 0.1 percent to 96.344.

* The U.S. economy is at increasing risk of becoming trapped in a prolonged phase of slow growth that points to the need for lower interest rates than previously expected, Federal Reserve policymaker Jerome Powell was quoted as saying.

* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.67 percent to 973.81 tonnes on Monday.Visit Us http://www.ripplesadvisory.com/agri-commodity.php  or Get Free Trials Just Give One Missed Call @98-27-80-80-90.

* The London Metal Exchange (LME) said on Tuesday it is planning to launch spot and futures contracts for gold and silver in the first half of 2017, adding to its list of products which includes copper and aluminium.