BENGALURU, June 14 (Reuters) - Gold prices inched lower on
Thursday as the Federal Reserve forecast two more U.S. rate
increases this year after raising rates on Wednesday, although
lingering worries over trade tensions between Washington and
Beijing prevented steeper losses.
FUNDAMENTALS
* Spot gold was down 0.1 percent to $1,298.61 per
ounce at 0047 GMT. It touched an over one-week low at $1,292.15
an ounce in the previous session.
* U.S. gold futures for August delivery rose 0.1
percent to $1,302.60 per ounce.
* The Federal Reserve raised interest rates on Wednesday, a
move that was widely expected but still marked a milestone in
the U.S. central bank's shift from policies used to battle the
2007-2009 financial crisis and recession. The central bank saw
two more rate hikes in 2018 for a total of four and three
increases in 2019.
* U.S. producer prices increased more than expected in May,
leading to the biggest annual gain in nearly 6-1/2 years, the
latest sign of a gradual building up of inflation pressures.
* U.S. two-year Treasury yields, the maturity most sensitive
to rate hike expectations, touched their highest in nearly 10
years while those on 10-year notes and 30-year bonds rose to
three-week peaks and one-week high, respectively.
* U.S. President Donald Trump will meet with his top trade
advisers on Thursday to decide whether to activate threatened
tariffs on billions of dollars in Chinese goods, a senior Trump
administration official said.
* Trump said on Wednesday that North Korea no longer poses a
nuclear threat and his top diplomat offered a hopeful timeline
for a "major disarmament," despite skepticism at home that
Pyongyang will abandon its nuclear weapons following this week's
summit.
* The European Central Bank will debate on Thursday whether
to end its huge asset purchases by year-end, in what would be
its biggest step towards dismantling crisis-era stimulus
credited with pulling the euro zone economy out of recession.
* Investors expect policy announcements from the European
Central Bank (ECB) on Thursday and Japan's central bank on
Friday.
* A former Mongolian finance minister and a businessman held
since April as part of an investigation into negotiations on the
Oyu Tolgoi copper and gold mine operated by Rio Tinto
have been released, court sources said.
* South African miner Tharisa on Wednesday deepened
its exposure to Zimbabwe, saying it had bought a 26.8 percent
stake in platinum group reserves for $4.5 million and could
increase its presence greatly if conditions are right.
