March 22, 2018 / 1:37 AM / 7 months ago

PRECIOUS-Gold up on faltering dollar after Fed comments

    March 22 (Reuters) - Gold prices edged higher on Thursday,
adding to gains in the previous session on the back of a weaker
dollar after the U.S. Federal Reserve disappointed investors
expecting more hawkish comments on interest rate rises.
       
    FUNDAMENTALS  
    * Spot gold        rose 0.1 percent to $1,333.41 per ounce
at 0030 GMT. Prices rose 1.6 percent in the previous session,
the biggest one day percentage gain since May 17, 2017.
    * U.S. gold futures         for April delivery rose 0.9
percent to $1,333.70 per ounce.
    * Against a basket of currencies, the dollar index       
was down 0.3 percent at 89.524 after falling as much as 0.7
percent overnight.       
    * The Fed raised interest rates on Wednesday and forecast at
least two more hikes for 2018, highlighting its growing
confidence that tax cuts and government spending will boost the
economy and inflation and spur more aggressive future
tightening.             
    * The Trump administration's punchbowl of tax cuts and
government spending may leave the U.S. economy with a stinging
hangover in two years, according to fresh Fed forecasts that
show monetary policy moving into "restrictive" territory for the
first time in more than a decade.             
    * Britain's central bank is likely to keep on course on
Thursday for an interest rate rise in May which would take
borrowing costs above their emergency levels for the first time
since the financial crisis more than a decade ago.             
    * President Donald Trump will announce tariffs on Chinese
imports on Thursday, a White House official said, in a move
aimed at curbing theft of U.S. technology that is likely to
trigger retaliation from Beijing and stoke fears of a global
trade war.             
    * China will actively take steps to safeguard its interests
as well as those of its industries, Vice Commerce Minister Wang
Shouwen said, in light of what he described as acts of trade
protectionism by the United States.             
    * EU leaders will consider on Thursday how best to enter
trade dialogue with Trump, whose planned tariffs on steel and
aluminium have threatened to trigger a trade war.             
    * U.S. home sales rebounded strongly in February, boosted by
hefty gains in the South and West regions, but a chronic
shortage of houses on the market remains an obstacle heading
into the spring selling season.             
    * A digital revolution is reshaping India's $34 billion gold
market, with smartphones, e-wallets and flexible investment
schemes drawing new buyers into a business dominated by
traditional, face-to-face transactions.                 
    
    DATA AHEAD (IN GMT)
    1230  U.S. Continued Jobless Claims           w/e
    1230  U.S. Initial Jobless Claims             w/e
    1345  U.S. Markit Comp Flash PMI              Mar
    1400  U.S. Leading Index Change MM            Feb
    1300  U.S. Monthly Home Price Index           Jan

 (Reporting by Eileen Soreng in Bengaluru; editing by Richard
Pullin)
  
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