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PRECIOUS-Gold holds steady on weaker dollar ahead of U.S. data

Feb 13 (Reuters) - Gold prices held steady on Tuesday, buoyed by a weaker dollar as investors waited for inflation data for clues on the pace of U.S. interest rate hikes.

FUNDAMENTALS

* Spot gold was mostly unchanged at $1,322 an ounce, as of 0102 GMT. On Monday, it rose 0.5 percent in its biggest one-day percentage gain in more than a week.

* U.S. gold futures were down 0.1 percent at $1,324.6 per ounce.

* Asian stocks pulled further away from two-month lows on Tuesday, lifted by Wall Street's extended rebound from last week's steep fall.

* U.S. inflation expectations edged lower last month, dulling a year-end rise, according to a Federal Reserve Bank of New York survey published on Monday.

* U.S. inflation data for January is due on Wednesday and the U.S. Federal Reserve next meets on March 20-21.

* President Donald Trump proposed a budget on Monday that calls for cuts in domestic spending and social programmes such as Medicare and seeks a sharp increase in military spending and funding for a wall on the Mexican border.

* U.S. Treasury yields rose on Monday, with benchmark 10-year yields hitting a four-year high and those on 30-year bonds climbing to an 11-month peak, as a stock rally and improving risk appetite diminished the safe-haven appeal of government debt.

* Euro zone government bond yields edged higher on Monday on signs that policymakers, with their eyes on inflation, will continue on their monetary tightening path regardless of recent equity market volatility.

* The dollar index against a basket of six major currencies extended modest losses suffered overnight and dipped 0.1 percent to 90.138.

* Goldman Sachs said the current market turbulence poses only a "modest" risk to their "optimistic" view on the global economy as much of the losses have been in the U.S. stock market due to rising bond yields and inflation worries.

* Turkey raised gold holdings by 17.46 tonnes to 582.25 tonnes in January, 2018, according to IMF data.

DATA AHEAD (In GMT)

0930 UK Consumer prices Jan 1100 U.S. NFIB business optimism Jan

(Reporting by Eileen Soreng in Bengaluru Editing by Joseph Radford)