FUNDAMENTALS
* Spot gold was flat at $1,836.69 per ounce, as of
0046 GMT, after hitting a one-week peak on Wednesday. U.S. gold
futures eased 0.1% to $1,843.40.
* Data on Wednesday showed U.S. manufacturing contracted for
a fourth straight month in February, but there were signs that
factory activity was starting to stabilise, with a measure of
new orders pulling back from a more than 2-1/2-year low.
* U.S. Federal Reserve officials were divided on Wednesday
over whether recent high inflation data and a continually hot
jobs market would require even more restrictive interest rates,
or just patience in maintaining tight monetary policy for a
longer period of time.
* Money markets expect the Fed's target rate to peak at
5.465% in September.
* German consumer prices, harmonised to compare with other
European Union countries, rose more than anticipated in
February, pointing to no let-up in stubborn cost pressures and
pushing up European Central Bank rate-hike expectations.
* Elevated interest rates dull gold's appeal as an inflation
hedge while raising the opportunity cost of holding the
non-yielding asset.
* The dollar index eased 0.1%, making bullion more
affordable for buyers holding other currencies.
* Benchmark U.S. 10-year Treasury yields hit 4%
for the first time since November on Wednesday.
* Spot silver was unchanged at $20.99 per ounce,
platinum lost 0.2% to $953.51 and palladium edged
0.2% lower to $1,442.96.
DATA/EVENTS (GMT)
1000 EU HICP Flash YY Feb
1000 EU HICP-X F, E, A&T Flash YY, MM Feb
1000 EU Unemployment Rate Jan
1330 US Initial Jobless Clm Weekly
(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu
Sahu)
