SINGAPORE (Reuters) - Gold edged up on Wednesday as Japan's aggressive monetary easing policy boosted bullion's appeal as a hedge against inflation, although gains may be capped as stronger equities lure buyers seeking better returns away.
FUNDAMENTALS
Spot gold added $1.57 an ounce to $1,586.27 by 0041 GMT after hitting $1,590 on Tuesday, its highest since April 2.
U.S. gold for June delivery was steady at $1,586.50 an ounce.
Gold futures on Tokyo Commodity Exchange moved towards a lifetime high at 5,081 yen a gram hit in February because of a weak yen, but gains on TOCOM failed to spur more gains in cash gold.
Investors will closely monitor minutes from the Federal Reserve's latest policy meeting, set to be released on Wednesday, for clues on U.S. monetary policy, particularly any changes to the central bank's $85 billion monthly purchases of mortgage-backed bonds.
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UBS and Deutsche Bank cut their 2013 gold price forecasts on Tuesday, with Deutsche lowering its price view by 12 percent to $1,637 an ounce, saying returns from the metal this year may be the worst since 2000.
MARKET NEWS
Asian shares edged higher on Wednesday after a strong session on Wall Street overnight while the yen remained under pressure, with tensions on the Korean peninsula seen capping gains for riskier assets.
Investors also awaited cues from Chinese trade data later in the session, which could show a pullback in annual export growth after February's rise.
(Reporting by Lewa Pardomuan; Editing by Himani Sarkar)