Gold holds below 2-week high on robust dollar, U.S. economy

SINGAPORE (Reuters) - Gold inched lower on Tuesday, moving further away from a two-week peak as its safe-haven appeal was dulled with the dollar holding close to a four-year high and growing signs of strength in the U.S. economy.

FUNDAMENTALS

* Spot gold had slipped $1 to $1,185.19 an ounce by 0051 GMT. The metal has eased off a two-week high of $1,193.95 hit in the previous session.

* The dollar held its own on Tuesday after European Central Bank officials raised the prospects of further stimulus steps and as investors waited to see if Japan's leader would call a snap election after the country unexpectedly slipped into recession.

* The dollar index, which measures the greenback against a basket of major currencies, was pushing closer to a four-year high set on Friday.

* A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies and also weakens its appeal as a hedge.

* U.S. economic data on Monday also hurt gold. While U.S. manufacturing output rose only modestly, other data overnight showed a rebound in factory activity in New York State.

* Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.33 percent to 723.01 tonnes on Monday - the first increase since Nov. 3, though they were still near a six-year low.

* India's central bank is in talks with the government to increase curbs on gold imports, Deputy Governor S.S. Mundra said on Monday, reflecting policymakers concerns that a jump in inbound shipments will worsen the country's trade deficit.

* More curbs could hit demand from India, the second biggest gold consumer, and could add pressure on gold prices.

* A vote in favour of boosting Switzerland's gold holdings at a Nov. 30 referendum won't necessarily lift bullion prices, Deutsche Bank said in a note, adding there was a "considerable" chance the motion would pass.

(Reporting by A. Ananthalakshmi; Editing by Joseph Radford)