Please use symbol entry at top right of page to search

PRECIOUS-Gold steady after U.S. Fed cranks up interest rates

       June 16 (Reuters) - Gold was flat on Thursday after a jump
in the previous session on falling Treasury yields and a weaker
dollar, which were driven lower by a large but widely expected
interest rate hike announcement from the U.S. Federal Reserve.

    FUNDAMENTALS
    * Spot gold        was little changed at $1,832.86 per ounce
as of 0034 GMT. U.S. gold futures        rose 1% to $1,836.90.
    * The Federal Reserve on Wednesday approved its largest
interest rate increase in more than a quarter of a century to
stem a surge in inflation that U.S. central bank officials
acknowledged may be eroding public trust in their power, and
being driven by events seen increasingly out of their hands.

    * Global stocks rallied and government bond yields and the
dollar retreated from multi-year highs on Wednesday as investors
cheered the Fed's decision to raise interest rates by
three-fourths of a percentage point.
    * Higher short-term U.S. interest rates increase the
opportunity cost of holding bullion, which yields no interest.
    * However, benchmark U.S. 10-year Treasury yields weakened
after the announcement, helping demand for greenback-priced gold
along with a slide in the dollar, and took bullion prices as
much as 1.9% higher on the day.
    * The Bank of England looks set to override its worries
about a sharp slowdown in the British economy and raise interest
rates again on Thursday as it tries to tackle an inflation rate
on course for double digits.
    * Spot silver        firmed 0.1% to $21.68 per ounce,
platinum        gained 0.7% to $945.55, and palladium
rose 0.5% to $1,869.24.


DATA/EVENTS (GMT)
0130  Australia  Employment                May
0130  Australia  Unemployment Rate         May
1100  UK         BOE Bank Rate             June
1100  UK         GB BOE QE Corp            June
1230  US         Housing Starts Number     May
1230  US         Initial Jobless Clm       Weekly
1230  US         Philly Fed Business Indx  June


 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Shailesh Kuber)

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.