Gold Subdued On Likelihood Of Fed Rate Hike

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Gold prices edged slightly lower early on Tuesday as the U.S. dollar gained on increasing expectations of a December interest rate hike by the Federal Reserve.

              FUNDAMENTALS

* Spot gold  was trading down 0.1 % at $1262.76 an ounce at 0058 GMT.

* U.S. gold futures eased nearly 0.1 % at $1263 an ounce.

* The dollar held near nine-month highs against a basket of major currencies on Tuesday as solid U.S. manufacturing activity and comments from a Federal Reserve official cemented expectations of a U.S. rate hike by year-end.

* The U.S. central bank will raise its policy rate three more times by the end of next year, Chicago Fed President Charles Evans, one of the Federal Reserve's most vocal policy doves, said on Monday.

* The dollar index, which measures the greenback against a basket of currencies, was up about 0.1 percent at 98.808.

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