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PRECIOUS-Gold holds near four-week low on elevated dollar

       June 14 (Reuters) - Gold prices hovered near a four-week low
on Tuesday, as a strong dollar countered safe-haven demand
fuelled by economic slowdown fears amid prospects of aggressive
monetary policy tightening.

    FUNDAMENTALS
    * Spot gold        was up 0.3% at $1,823.69 per ounce, as of
0057 GMT, after falling to its lowest since May 19 at $1,810.90
earlier in the session. U.S. gold futures        fell 0.4% to
$1,825.20.
    * Gold and palladium suffered sharp declines on Monday, as
the dollar rallied on bets for steep U.S. Federal Reserve
interest rate hikes, eroding the appeal of bullion and other
precious metals.
    * The dollar still seemed to be the safe haven of choice,
steadying near a two-decade high scaled on Monday, and drawing
most investors away from greenback-priced gold.
    * Asian shares tumbled after Wall Street officially entered
bear market territory and bond yields hit a two-decade high on
fears aggressive U.S. interest rate hikes would push the world's
largest economy into recession.
    * Higher short-term U.S. interest rates and bond yields
increase the opportunity cost of holding bullion, which yields
no interest.
    * Late on Monday, expectations for a 75 basis point hike at
the Fed's June meeting jumped to 96% from 30% earlier in the
day, according to CME's Fedwatch Tool. A 75-bp hike would be the
biggest since 1994.
    * Spot silver        dipped 0.9% to $21.68 per ounce,
platinum        fell 0.6% to $967.67, and palladium
dropped 1.3% to $1,909.49.


DATA/EVENTS (GMT)
0600  UK       Claimant Count Unem Chng  May
0600  Germany  HICP Final YY             May
0600  UK       ILO Unemployment Rate     April
0900  Germany  ZEW Economic Sentiment    June
0900  Germany  ZEW Current Conditions    June
U.S. Federal Open Market Committee starts its two-day meeting
on interest rates (to June 15)


 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Subhranshu Sahu)

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