Please use symbol entry at top right of page to search

PRECIOUS-Gold ticks higher as subdued dollar, stocks boost appeal

       * Gold hovering near two-week highs
    * Dollar hits fresh one-month low
    * ECB's Lagarde sees rate at zero or slightly above by Sept.

 (Recasts, adds comments, updates details and prices)
    By Ashitha Shivaprasad
    May 24 (Reuters) - Gold prices extended gains for a fifth
straight session on Tuesday, hovering near a two-week high hit
in the previous session, as a sell-off in dollar and stock
markets bolstered bullion's safe-haven appeal.
    Spot gold        was up 0.2% at $1,856.03 per ounce, as of
1013 GMT, after hitting its highest since May 9 of $1,865.29 on
Monday. U.S. gold futures        rose 0.4% to $1,855.30.
    The dollar is easing again and it will continue to support
gold until there is some hawkish statement from the Federal
Reserve, said Quantitative Commodity Research analyst Peter
Fertig.
    The greenback hit a one-month low, as a broad selloff in
stock markets failed to boost the U.S. currency's safe-haven
appeal. U.S. 10-year Treasury yields edged lower.

    "Gold is in a great space at the moment with almost all
supporting markers favouring the yellow metal. U.S. 10-year TIPS
has plateaued giving added impetus to gold upside because of the
reduced cost of holding gold - traditionally an inverse
relationship," DailyFX analyst Warren Venketas wrote in a note.
     Gold is seen as a safe store of value during times of
economic crises and hedge against inflation, but rising interest
rates tend to weigh on non-yielding bullion.
    European Central Bank President Christine Lagarde said she
saw the ECB's deposit rate at zero or "slightly above" by
September end, implying an increase of at least 50 basis points
from its current level.
    "Lagarde's comment came as a surprise to the market... In
the long run for gold, increasing interest rates faster than the
market expected, would imply that opportunity costs for holding
gold for investors will increase," added Fertig.
    Spot silver        rose 0.3% to $21.83 per ounce, while
platinum        eased 0.4% to $954.30. Palladium        gained
0.5% to $2,002.18.

 (Reporting by Bharat Govind Gautam and Ashitha Shivaprasad in
Bengaluru; Editing by Rashmi Aich)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.