Gold near five-week low, stimulus outlook in focus

Singapore, Reuters (17/9) -- Gold hovered near a five-week low on Tuesday as traders waited for guidance on when the U.S. Federal Reserve will begin tapering its massive economic stimulus. Spot gold had risen 0.1 percent to $1,315.10 an ounce by 0015 GMT, after falling 1 percent in the previous session to a five-week low of $1,303.85. U.S. gold dropped $2.50 to $1,315.30. The Fed, which kicks off a two-day policy meeting on Tuesday, is widely expected to begin curbing its $85 billion monthly bond purchases by $10 billion this month. Traders are betting the U.S. central bank will keep policy easier for longer now that former Treasury Secretary Lawrence Summers is out of the running to succeed Ben Bernanke as chairman. Bullion has lost more than 20 percent of its value this year as a recovering U.S. economy has dented its safe-haven appeal. Data on Monday showed that U.S. factory output surged in August as the pace of motor vehicle assemblies jumped to a six-year high.