Singapore: Gold was stuck near three-month lows on Tuesday on renewed expectations of a mid-year hike in U.S. interest rates and as the dollar scaled a fresh 11-year peak.
FUNDAMENTALS
* Spot gold was little changed at $1,166.26 an ounce by 0040 GMT, close to a three-month low of $1,163.45 reached on Friday.
* Gold took a hit from Friday`s strong U.S. nonfarm payrolls data that boosted expectations the Federal Reserve would begin increasing interest rates in June.
* Higher interest rates could dent demand for assets that do not pay interest such as gold, and boost the dollar.
* The greenback climbed to its highest since September 2003 against a basket of major currencies, denting bullion`s appeal as a safe haven.
* Investor positioning indicated bearishness in the market. Holdings of SPDR Gold Trust , the world`s largest gold-backed exchange-traded fund, fell 0.43 percent to 753.04 tonnes on Monday - their lowest in more than a month.
* Traders were also eyeing talks over the Greek debt crisis, where prolonged uncertainty could help safe-haven bullion.
* Finance experts from Greece will open talks about economic reforms on Wednesday with officials from the European Union, the ECB and the International Monetary Fund.
* The ECB`s Governing Council is set to hold a teleconference on Thursday to discuss extending emergency liquidity assistance for Greek banks.
