July 23 (Reuters) - Gold prices fell in early Asian trade on
Tuesday as the dollar rose to a near one-week high on
expectation of a smaller interest rate cut by the U.S. Federal
Reserve at the end of this month.
FUNDAMENTALS
* Spot gold XAU= was down 0.5% at $1,417.11 per ounce as
of 0120 GMT.
* U.S. gold futures GCv1 slipped 0.5% to $1,419.30 an
ounce.
* The dollar index .DXY gained 0.1% to a near one-week
high, making gold expensive for holders of other currencies.
USD/
* The U.S. central bank is widely expected to lower its
interest rate target range of 2.25%-2.50% by 25 basis points at
a meeting ending July 31, but expectations for a larger 50-basis
point cut have waxed and waned due to mixed signals from Fed
policymakers.
* The global march towards lower interest rates reaches
Europe this week with the European Central Bank expected at
least to signal easier monetary policy. * Expectations of policy easing by major central banks such
as the Fed propped up global stocks on Tuesday. MKTS/GLOB
* Meanwhile, Sterling was on the back foot on Tuesday as
investors worried Boris Johnson, the front runner to become the
UK's next prime minister, would trigger a "hard Brexit" from the
European Union. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.57% to 825.18
tonnes on Monday from 820.49 tonnes on Friday. GOL/ETF
DATA AHEAD
* 1400 US Existing Home Sales June
* 1400 EU Consumer Confid. Flash July