FUNDAMENTALS
* Spot gold rose 0.8% at 2,055.54 per ounce by 0035
GMT. U.S. gold futures were up 1.3% at $2,063.20.
* Earlier in the session, bullion prices rose to $2,072.19
per ounce and hovered close to an all-time high of $2,072.49
scaled in 2020.
* The U.S. central bank raised its benchmark overnight
interest rate by a quarter-of-a-percentage point, as expected by
markets. The Fed no longer said it "anticipates" further rates
increases will be needed, only that it will watch incoming data
to determine if more hikes "may be appropriate."
* Lower rates tend to boost demand for the zero-yielding
asset.
* Fed Chair Jerome Powell on Wednesday said "the case of
avoiding a recession is in my view more likely than that of
having a recession."
* The European Central Bank is expected later in the day to
raise interest rates for the seventh meeting in a row.
* The dollar index was down 0.2%, making
greenback-priced gold more affordable for overseas buyers.
* Spot silver rose 0.5% at $25.72 per ounce, platinum gained 0.7% to $1,056.29 while palladium edged 0.8% higher to $1,433.75.
DATA/EVENTS (GMT)
0145 China Caixin Mfg PMI Final April
0750 France S&P Global Serv, Comp PMIs April
0755 Germany S&P Global Serv PMI April
0755 Germany S&P Global Comp Final PMI April
0800 EU S&P Global Serv, Comp Final PMIs April
0830 UK Composite PMI Final April
0830 UK Reserve Assets Total April
1215 EU ECB Refinancing Rate May
1215 EU ECB Deposit Rate May
1230 US International Trade March
1230 US Initial Jobless Clm Weekly
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by
Sherry Jacob-Phillips)
