FUNDAMENTALS
* Spot gold was little changed at $1,986.71 per ounce
by 0042 GMT, but was headed for a 0.2% weekly gain.
* U.S. gold futures eased 0.1% to $1,996.20.
* The dollar index was largely unchanged on the day,
but was set for a weekly fall, making gold less expensive for
other currencies holders.
* U.S. economic growth slowed more than expected in the
first quarter as an acceleration in consumer spending was offset
by businesses liquidating inventories in anticipation of weaker
demand later this year amid higher borrowing costs, data showed.
* The FOMC (Federal Open market Committee) gathers on May
2-3, and markets are pricing in a 85.4% chance of a 25 basis
points rate hike.
* Although gold is considered a hedge against economic
uncertainties, higher rates tend to dull zero-yielding bullion's
appeal.
* Meanwhile, the U.S. Senate showed no sign of moving to
avoid a looming debt-ceiling crisis on Thursday, as Republicans
rejected calls to raise the $31.4 trillion limit without
conditions and Democrats dismissed the idea of talks.
* The Fed's emergency lending to banks rose modestly in the
latest week and remained at very high levels, even as many
central bankers argue the worst of the banking sector's latest
stresses are waning.
* Elsewhere, core consumer inflation in Japan's capital beat
expectations in April and an index stripping away fuel costs
rose at the fastest pace in four decades, highlighting the
challenge new the central bank chief faces in keeping ultra-low
interest rates.
* Spot silver fell 0.3% to $24.88 per ounce, while
platinum rose 0.3% to $1,079.67 per ounce. Palladium inched 0.1% lower to $1,494.18.
DATA/EVENTS (GMT) 0530 France GDP Preliminary QQ Q1 0645 France CPI (EU Norm) Prelim YY April 0645 France Producer Prices YY March 0800 Germany GDP Flash QQ SA, YY NSA Q1 0900 EU GDP Flash Prelim YY, QQ Q1 1230 US Consumption, Adjusted MM March 1230 US Core PCE Price Index MM, YY March 1230 US PCE Price Index MM, YY March 1400 US U Mich Sentiment Final April (Reporting by Arundhati Sarkar in Bengaluru; editing by Uttaresh Venkateshwaran)
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