Gold prices dipped on Tuesday and were poised for a monthly decline of about 6% as the prospects of further interest rate hikes from the U.S. Federal Reserve continued to weigh on the zero-yielding asset's appeal.

 

FUNDAMENTALS

* Spot gold was down 0.1% at $1,816.33 per ounce, as of 0052 GMT, after hitting a two-month low on Monday. U.S. gold futures were flat at $1,824.70.

* New orders for key U.S.-manufactured capital goods increased by the most in five months in January while shipments of core goods rebounded, suggesting that business spending on equipment picked up at the start of the first quarter, according to data on Monday.

* Separate data on Monday showed contracts to buy U.S. previously owned homes rose by the most in more than 2-1/2 years in January.

* Money markets expect the U.S. Fed's target rate to peak at 5.405% in September, from a current range of 4.50% to 4.75%.

* Bullion is often seen as a hedge against inflation, but the opportunity cost of holding it rises when interest rates are increased to bring down inflation.

* China's net gold imports via Hong Kong in January fell by about 47% from the previous month, Hong Kong Census and Statistics Department data showed on Monday.

* The dollar index was off a seven-week high hit on Monday, making bullion less expensive for buyers holding other currencies.

* Spot silver was flat at $20.62 per ounce, platinum fell 0.3% to $936.15 and palladium lost 0.7% to $1,419.89.

DATA/EVENTS (GMT)

0745 France GDP QQ Final Q4

0745 France CPI (EU Norm) Prelim YY Feb

0745 France Producer Prices YY Jan

1500 US Consumer Confidence Feb

(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips)