BENGALURU (Reuters) - Gold slipped in early trade on Tuesday to trade near a 3-1/2 week low hit a day earlier, as prices remained under pressure on expectations that the U.S. Federal Reserve will increase interest rates as early as June.
FUNDAMENTALS
* Spot gold > edged down 0.1 percent to $1,247.30 per ounce by 0056 GMT. The metal fell to $1,242.63 an ounce, the lowest since April 28 on Monday.
* U.S. gold futures
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* San Francisco Fed President John Williams said the central bank is on track to hike rates in June or July despite risks such as a "Brexit" vote, and will continue with even more increases next year given U.S. economic strength, a top Fed official said on Monday.
* U.S. rates being kept too low for too long could cause financial instability in future and stronger market expectations for a rate rise are "probably good", St. Louis Federal Reserve President James Bullard said on Monday.
* Goldman Sachs economists said on Monday they estimated a 35 percent chance the Federal Reserve would raise its target on the federal funds rate at its June 14-15 policy meeting.
* Holdings in SPDR Gold Trust
* The dollar index held steady and the greenback was firm at 109.260 yen >, having fallen to as low as 109.120 overnight.
* Russia's largest gold producer, Polyus
* The Fed's policymakers are scheduled to speak this week and are expected to back the case for a rate hike within months. Fed Chair Janet Yellen will be at a panel event hosted by Harvard University on Friday.
MARKET NEWS
* Asian shares were nearly flat in early trading on Tuesday, while MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> did not stray far from its previous close, after Wall Street closed with modest losses overnight.
Day ahead (GMT)
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(Reporting by Vijaykumar Vedala in Bengaluru; Editing by Ed Davies)
