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Gold prices hovered near three-month lows as upbeat U.S. economic reports made a strong case for rates being higher, yet traders awaited cues from Federal Reserve Chair Jerome Powell and more economic data for a path ahead on rate-hikes.

FUNDAMENTALS

* Spot gold was little changed at $1,913.82 per ounce by 0120 GMT, close to a three-month low of $1,910 hit on June 23. U.S. gold futures were little changed at $1,924.50.

* The dollar index held steady. [USD/]

* U.S. consumer confidence increased in June on labour market optimism, while new single-family home sales rose more than expected in May, leading to expectations that the Fed would need to continue to raise rates to bring inflation down to its 2% target. Gold fell up to 0.6% after the data.

* Investors expect a 77% chance of a rate hike in July, with rate cuts seen from March 2024 onwards, per CME's Fedwatch tool.

* High interest rates discourage investing in non-yielding gold.

* Investors will keenly watch Thursday's personal consumption expenditure (PCE) price index data for May, first quarter GDP data, and weekly jobless claims for the week ended June 23. Core-PCE is forecast to stay unchanged at 0.4%.

* Fed Chair Powell will speak at a policy panel before the European Central Bank Forum on Central Banking in Sintra at 1330 GMT.

* Sources told Reuters on Tuesday that ECB policymakers don't expect inflation easing enough to pause rate hikes this summer.

* Elsewhere, Japan's top currency diplomat Masato Kanda said authorities would take appropriate responses if the yen slumps excessively after the currency fell to fresh seven-month troughs versus the dollar overnight.

* Spot silver fell 0.1% to $22.86 per ounce, platinum was down 0.7% to $918.57 while palladium rose 0.1% to $1,296.88.

DATA/EVENTS (GMT)

0600 Germany Gfk Consumer Sentiment July

0645 France Consumer Confidence June

0800 EU Money-M3 Annual Grwth May