Gold up as U.S. Rate hike Expectations cool

Gold rose for a second day on Tuesday on lower expectations that the U.S. Federal Reserve will raise interest rates this year due to mixed macro economic signals from the world's largest economy. 

 FUNDAMENTALS 

* Spot gold was up 0.5 percent at $1,345.68 an ounce at 0100 GMT. The metal rose 0.2 percent on Monday. 

* U.S. gold rose 0.3 percent to $1,351 an ounce.

* The greenback was put on the defensive after weaker-than-expected U.S. data on Friday dented prospects of a near-term rate hike the Fed. 

* Central bankers and governments must come up with new policies to buffer their economies against persistently low interest rates that threaten to make future recessions deeper and more difficult to avoid, San Francisco Fed President John Williams said. 

* The Bank of Japan's policy review could put up for debate its target for expanding base money through massive asset purchases.

* British employers have turned more cautious about hiring and the price of homes for sale fell by the most since late 2015, according to surveys that added to signs the economy has stumbled since the Brexit referendum.

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