Gold steadied on Wednesday after falling 2 percent to a near three-month low the day before, when a bigger-than-expected drop in U.S. consumer confidence and an option expiry prompted heavy selling.
FUNDAMENTALS
* Spot gold was at $1,162.60 an ounce as of 2349 GMT, up 0.3 percent from late New York levels of $1,159.65 per ounce.
* Spot gold fell to a low of $1,157.65 an ounce on Tuesday, the cheapest price since May 5. Bullion also posted its biggest one-day decline since July 1.
* U.S. gold futures for August delivery rose 3 percent to $1,161.40 per ounce, after settling on COMEX at a three-month low of $1,158.00 an ounce.
* Gold priced in euros and sterling also fell on Tuesday. Euro-priced gold fell to its weakest since May 4 while sterling-denominated bullion reached a three-month trough.
* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings fell to 1,300.829 tonnes by July 27, down 0.913 tonnes from the previous business day.
MARKET NEWS
* The S&P snapped a three-day winning streak on Tuesday after mixed earnings reports and a fall in consumer confidence, but analysts said U.S. stocks were taking a breather and the rally could pick up again.
* The euro hovered below a key level on Wednesday, running into profit taking after it hit a 11-week high against the U.S. dollar, with attention turning towards the Australian dollar ahead of crucial inflation data.