July 25 (Reuters) - Gold prices edged lower on Thursday as the U.S. dollar
hovered near multi-week highs, while investors awaited clues on monetary policy
easing from leading central banks to shore up global economy.
FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,422.31 per ounce, as of 0120 GMT.
* U.S. gold futures GCv1 were steady at $1,423.50 an ounce.
* The dollar index .DXY was relatively unchanged against a basket of major
currencies, after hitting a five-week peak in the previous session. USD/
* Investor focus shifted to the European Central Bank (ECB) meeting due
later in the day and a widely expected interest rate cut from the U.S. Federal
Reserve next week, which are expected to dictate the tempo for currencies and
bond yields in coming months.
* Cementing hopes of a rate cut, a series of purchasing manager index (PMI)
readings in the United States and Europe on Wednesday came in weaker than
expected.
* In the United States, manufacturing activity slowed to a 10-year low in
early July with production volumes and purchases falling. Weak housing and
manufacturing are offsetting strong consumer spending, holding back the economy
and posing a threat to the longest expansion in history. * PMI data showed euro zone manufacturing contracting for a sixth straight
month, dragging the euro to a two-month low against the dollar.
* Asian shares were cautious on Thursday, shrugging off a tech-fuelled rally
on Wall Street, while the euro hovered near two-month lows as soft economic data
bolstered expectations of rate cuts in Europe. MKTS/GLOB
* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded
fund, said its holdings dropped 0.11% to 822.25 tonnes on Wednesday from 823.13
tonnes on Tuesday. GOL/ETF
DATA AHEAD
* 1145 EU ECB Refinancing Rate July
* 1145 EU ECB Deposit Rate July
* 1230 US Durable Goods June
* 1230 US Initial Jobless Claims Weekly