FUNDAMENTALS
* Spot gold held ground at $1,848.59 an ounce, at 0102 GMT. US gold futures were little changed at $1,846.70. For the week so far, bullion is up 0.2%.
* Gold prices fell on Thursday as the US Federal Reserve’s aggressive monetary policy tightening plan dampened the metal’s appeal, with further pressure coming from a rebound in equities. [MKTS/GLOB]
* The minutes of the May 3-4 Fed policy meeting released on Wednesday pointed out, as the market expected, that most participants favored further rate hikes of 50 basis points during the June and July meetings.
* Rising short-term US interest rates and bond yields increase the opportunity cost of holding bullion, which pays nothing.
* The dollar index stabilized after a decline in the previous session and was forecast for a second straight weekly decline, making bullion cheaper for buyers holding other currencies. [USD]
* US Treasury yields were subdued after the benchmark 10-year note hit a new six-week low as inflation fears continued to dissipate as economic data and corporate announcements point to a slowdown in the growth. [US]
* Spot silver fell 0.2% to $21.95 an ounce and has gained around 0.9% so far this week.
* Platinum was nearly flat at $950.28 and has slipped 0.5% this week.
* Palladium fell 0.2% to $2,006.47 and was forecast for a weekly gain of around 2.2%, its highest level since early April.
