FUNDAMENTALS
* Spot gold was up 0.2% at $1,972.72 per ounce, as of
0101 GMT. U.S. gold futures gained 1.3% to $1,974.60.
* Gold prices jumped 2% on Wednesday after the Fed raised
interest rates, but indicated it might pause further increases
in borrowing costs after the recent collapse of two U.S. banks.
* Fed policymakers believe beating back inflation may
require just one more interest-rate hike this year, but less
easing next year than most thought would be appropriate just
three months ago.
* Gold is traditionally considered a hedge against
inflation, and a low interest-rate environment makes
non-yielding bullion a more attractive bet.
* U.S. Treasury Secretary Janet Yellen told lawmakers on
Wednesday that she has not considered or discussed "blanket
insurance" to U.S. banking deposits without approval by Congress
as a way to stem turmoil caused by two major bank failures this
month.
* Fed Chair Jerome Powell said on Wednesday banking industry
stress could trigger a credit crunch with "significant"
implications for an economy that U.S. central bank officials
projected will slow even more this year than previously thought.
* The dollar index eased 0.1%, making bullion less
expensive for buyers holding other currencies. U.S. Treasury
yields fell.
* Spot silver rose 0.2% to $23.06 per ounce, platinum added 0.8% at $986.19, while palladium fell 0.2%
to $1,447.21.
DATA/EVENTS (GMT)
1200 UK BOE Bank Rate March
1230 US Initial Jobless Clm Weekly
1400 US New Home Sales-Units Feb
1500 EU Consumer Confid, Flash March
(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry
Jacob-Phillips)
March 23 (Reuters) - Gold prices edged higher on
Thursday after the U.S. Federal Reserve raised interest rates by
an expected 25 basis points and signalled it was on the verge of
pausing future hikes in view of recent turmoil in the financial
sector.
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