May 24, 2018 / 1:08 AM / a month ago

PRECIOUS-Gold prices extend gains after dovish Fed stance

    BENGALURU, May 24 (Reuters) - Gold prices edged higher for a
second day on Thursday as the dollar extended losses after
minutes of the latest Federal Reserve meeting hinted at a dovish
approach to interest rate hikes in the United States. 
    
    FUNDAMENTALS  
    * Spot gold        was up 0.1 percent at $1,294.58 per ounce
at 0046 GMT, after gaining nearly 0.2 percent in the previous
session.
    * U.S. gold futures         for June delivery were up 0.3
percent at $1,294 per ounce.
    * The dollar index       , which measures the greenback
against a basket of six major currencies, eased 0.1 percent at
93.925.
    * Asian shares moved lower on Thursday as investors fretted
about new setbacks in U.S.-China trade talks, but negative
sentiment was tempered by U.S. Federal Reserve meeting minutes
suggesting it would not raise the tempo at which it increases
interest rates.            
    * Most Federal Reserve policymakers thought it likely
another interest rate increase would be warranted "soon" if the
U.S. economic outlook remains intact, minutes of the central
bank's last policy meeting showed.             
    * U.S. President Donald Trump said on Wednesday he would
know next week whether his summit with North Korean leader Kim
Jong Un would take place as scheduled, casting further doubt on
plans for the unprecedented meeting.             
    * U.S. President Donald Trump on Wednesday signaled a new
direction in U.S.-China trade talks and said any deal would need
"a different structure," fueling uncertainty over current
negotiations and sending U.S. stocks lower.             
    * The European Central Bank can still end its bond buying
program later this year, two policymakers said on Wednesday,
even as fresh data cast further doubt on the health of the euro
zone economy.             
    * Euro zone economic growth slowed much more sharply than
expected this month, a business survey showed, which along with
weaker inflation has intensified concerns there will be no
return to the bloc's recent boom times.             

    DATA/EVENT AHEAD (GMT)
    0600  Germany       Detailed GDP                      Q1
    0600  Germany       GfK consumer sentiment           Jun
    0645  France        Business climate                 May
    1130  European Central Bank minutes of April meeting
    1230  U.S.          Weekly jobless claims
    1300  U.S.          Monthly home price index         Mar
    1400  U.S.          Existing home sales              Apr

 (Reporting by Karen Rodrigues in Bengaluru; editing by Richard
Pullin)
  
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