Oct 5 (Reuters) - Gold edged higher early on Wednesday, after falling 3.3 percent in the prior session to its lowest in more than three months, as the dollar eased back and equities fell.
FUNDAMENTALS
* Spot gold XAU= was up 0.3 percent at $1,271.44 an ounce by 0115 GMT, while U.S. gold futures GCcv1 rose 0.3 percent to $1,273.50 an ounce after falling over 3 percent in the previous session.
* Spot gold fell 3.3 percent to a low of 1,266.33 on Tuesday, its biggest one day percentage drop since September 2013 after a report of a possible tapering of bond purchases sooner than expected by the European Central Bank.
* Bloomberg reported on Tuesday that the European Central Bank would probably wind down its 80-billion-euro ($90-billion) monthly bond purchases gradually before ending its quantitative easing programme, citing unnamed officials at euro zone countries' central banks. ECB media officer Michael Steen later tweeted that the central bank's decision-making body has not discussed reducing the pace of its monthly bond buying. The dollar index, which tracks the currency against a basket of major peers, fell 0.1 percent to 96.049 .DXY
* Asian shares edged lower on Wednesday and bond yields were near two-week highs. MKTS/GLOB
* Richmond Federal Reserve President Jeffrey Lacker said he would have voted in favor of an interest rate hike at the Fed's September policy meeting had he been able to vote, reflecting the growing pressure on Fed Chair Janet Yellen to raise rates. The International Monetary Fund maintained its forecast for weak global growth on Tuesday and warned that further stagnation will fuel more populist sentiment against trade and immigration that would stifle activity, productivity and innovation. Barrick Gold Corp ABX.TO said on Tuesday normal operations had resumed at its Veladero mine in Argentina. Work at Sibanye Gold's SGLJ.J South African Cooke mine has been suspended after two members of the National Union of Mineworkers were left in a critical condition after being attacked. For the top stories on metals and other news, click TOP/MTL or GOL
DATA/EVENT AHEAD (GMT)
0750 France
Markit services PMI
September
0755 Germany
Markit services PMI
September
0800 Euro zone
Markit services PMI final
September
0900 Euro zone
Retail sales
August
1215 U.S.
ADP national employment
September
1230 U.S.
International trade
August
1400 U.S.
ISM non-manufacturing PMI
September