PRECIOUS-Gold steadies after 2 pct fall on weak U.S. data

TOKYO, July 28 (Reuters) - Gold steadied on Wednesday after
falling 2 percent to a near three-month low the day before, when
a bigger-than-expected drop in U.S. consumer confidence and an
option expiry prompted heavy selling.

FUNDAMENTALS

* Spot gold XAU= was at $1,162.60 an ounce as of 2349 GMT,
up 0.3 percent from late New York levels of $1,159.65 per ounce.

* Spot gold fell to a low of $1,157.65 an ounce on Tuesday,
the cheapest price since May 5. Bullion also posted its biggest
one-day decline since July 1.

* U.S. gold futures for August delivery GCQ0 rose 3 percent
to $1,161.40 per ounce, after settling on COMEX at a three-month
low of $1,158.00 an ounce.

* Gold priced in euros and sterling also fell on Tuesday.
Euro-priced gold XAUEUR=R fell to its weakest since May 4 while
sterling-denominated bullion XAUGBP=R reached a three-month
trough.

* The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust (GLD.P: Quote) said its holdings fell to 1,300.829 tonnes by
July 27, down 0.913 tonnes from the previous business day.
[GOL/SPDR]

MARKET NEWS

* The S&P snapped a three-day winning streak on Tuesday after
mixed earnings reports and a fall in consumer confidence, but
analysts said U.S. stocks were taking a breather and the rally
could pick up again. [.N]

* The euro hovered below a key level on Wednesday, running
into profit taking after it hit a 11-week high against the U.S.
dollar, with attention turning towards the Australian dollar
ahead of crucial inflation data. [USD/]

DATA EVENTS

* The following data is expected on Wednesday: ECON

- German preliminary CPI for July. (N/A)

- German preliminary HICPfor July. (N/A)

- Weekly U.S. mortgage market index. (1100 GMT)

- U.S. durable goods for June. (1230 GMT)

- U.S. Beige Book. (1800 GMT)

RELATED NEWS
>Gold drops 2 pct on weak data, option expiration [GOL/]
>Oil leads broad slump as U.S. data stings [COM/WRAP]
>US consumer confidence dims, home prices climb [ID:nN27260375]
>US Senate unveils energy bill, doubts on passage[ID:nN2797530]
>Record LME trading volumes, eyes Asian business [nLDE66Q16K]

PRICES

Precious metals prices at 2355 GMT
Metal Last Change Pct chg 2 Day chg MA 30 RSI
Spot gold $1162.05 $2.40 +0.21% +0.36% $1227.30 28
Spot silver $17.64 $0.03 +0.17% -2.97% $18.35 39
Spot plat $1529.50 $2.35 +0.15% -1.00% $1547.25 53
COMEX gold $1161.50 -$21.60 -1.83% -2.21% $1194.76 25
TOCOM gold 3,308 -18 -0.54% -1.61% 3,439 36
TOCOM plat 4,400 15 +0.34% +0.50% 4,372 59
Currencies
Euro/dlr $1.299 -$0.001 -0.05% -0.06%
Dlr/yen 87.79 -0.09 -0.10% +0.99%
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Chikako Mogi; Editing by Edwina Gibbs)