Please use symbol entry at top right of page to search

PRECIOUS-Gold edges higher as investors await big Fed rate hike move

       June 15 (Reuters) - Gold prices inched up from a near
one-month low on Wednesday, as investors awaited a potentially
aggressive and key interest rate hike announcement from the U.S.
Federal Reserve as it seeks to combat inflation amid mounting
fears of an impending recession.

    FUNDAMENTALS
    * Spot gold        was up 0.1% at $1,810.59 per ounce as of
0051 GMT, after dropping to its lowest since May 16 at $1,803.90
on Tuesday. U.S. gold futures        fell 0.1% to $1,811.30.
    * Investors have dramatically raised their bets that the Fed
will raise interest rates by 75 basis points (bps) rather than
50 bps later in the day, a swing in expectations which has
fuelled a violent selloff across world markets.
    * Rising short-term U.S. interest rates and bond yields
increase the opportunity cost of holding bullion, which yields
no interest.
    * Benchmark U.S. 10-year Treasury yields edged off a
multi-year peak, providing some support to gold.
    * World stocks extended losses on Tuesday, while the dollar
clung to multi-year highs, as surging inflation led investors to
brace for what could be the largest U.S. interest rate hike in
28 years.
    * A stronger dollar        makes greenback-priced bullion
more expensive for buyers holding other currencies.
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.46% to 1,063.94
tonnes on Tuesday from 1,068.87 tonnes on Monday.
    * Spot silver        dipped 0.1% to $21.06 per ounce, while
platinum        gained 0.3% to $921.84, and palladium
firmed 0.3% to $1,820.35.


DATA/EVENTS (GMT)
0200  China   Urban Investment (YTD) YY   May
0200  China   Industrial Output YY        May
0200  China   Retail Sales YY             May
0645  France  CPI (EU Norm) Final MM, YY  May
1100  EU      Reserve Assets Total        May
1230  US      Retail Sales MM             May
1800  US      Federal Open Market Committee announces its
decision on interest rates followed by statement


 (Reporting by Bharat Govind Gautam 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.