June 11, 2020 / 1:55 AM / 23 days ago

PRECIOUS-Gold hits over 1-week high on gloomy U.S. Fed outlook

    June 11 (Reuters) - Gold prices touched a more than one-week
high on Thursday, as bleak economic projections from the U.S.
Federal Reserve boosted demand for the safe-haven metal.
                
    FUNDAMENTALS    
    * Spot gold        was down 0.2% at $1,732.56 per ounce, as
of 0114 GMT, after hitting its highest level since June 2
earlier in the session.
    * U.S. gold futures        climbed 1.2% to $1,741.90.
    * On Wednesday, gold rose 1.3%- its largest daily percentage
rise in over a month.
    * On Wednesday, the U.S. central bank repeated its promise
of continued extraordinary support, estimating the U.S. economy
to shrink by 6.5% in 2020 and the unemployment rate to be at
9.3% at year's end.             
    * Fed officials also flagged the need to keep the key
interest rate near zero through at least 2022.
    * Large stimulus measures and low interest rates tend to
support gold, which is often considered a hedge against
inflation and currency debasement.
    * Asian equities were set to fall on Thursday after gloomy
economic projections from the Fed sent the U.S. dollar and most
Wall Street shares lower.                        
    * In the U.S., coronavirus cases rose over 2 million on
Wednesday. New infections are rising slightly after five weeks
of declines, however, part of the increase is due to more
testing.             
    * White House Economic Adviser Larry Kudlow said the U.S.
economy appears to have hit a turning point after rapidly
plunging into a recession due to the coronavirus pandemic about
three months ago.             
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.4% to 1,129.50
tonnes.          
    * Palladium        fell 0.9% to $1,929.96 per ounce and
silver        declined 1.7% to $17.95, while platinum       
rose 0.5% to $836.38.

    
    DATA/EVENTS (GMT)
    
1230  US  Initial Jobless Claims  Weekly
1600  US  Federal Reserve releases figures on the financial
health of U.S. household in its Flow of Funds report for Q1

 (Reporting by Harshith Aranya in Bengaluru; Editing by Rashmi
Aich)
  
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