FUNDAMENTALS
* Spot gold was flat at $1,847.49 an ounce, 0036 GMT. US gold futures were up 0.2% at $1,851.40.
* Benchmark US 10-year Treasury yields have fallen, increasing the appeal of zero-yield gold. [US/]
* The price of gold rallied on Wednesday after hitting its lowest level since May 19 as investors turned to safe havens amid mounting inflationary pressures.
* Although the dollar has strengthened amid upbeat US economic data, making bullion less attractive to overseas buyers. [USD/] [USD/]
* The U.S. Federal Reserve is expected to raise interest rates to a level that no longer stimulates the economy as quickly as possible, including 50 basis point hikes at the next two central bank meetings, Mary Daly, president of the San Francisco Federal Reserve.
* U.S. job vacancies fell in April but remained at significantly high levels, suggesting wages will continue to rise as companies scramble to find workers, and will help keep inflation down uncomfortably lifted for some time.
* Bullion is considered a hedge against inflation and a safe haven in times of political and economic uncertainty. However, rising US short-term interest rates increase the opportunity cost of holding gold, which bears no interest.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 1,067.20 tonnes on Wednesday from 1,068.36 tonnes on Tuesday. [GOL/ETF]
*Spot silver was flat at $21.80 an ounce, while platinum was down 0.7% at $990.00 and palladium was up 0.4% at $2,005.50.
DATA/EVENTS (GMT)
0130 Australia G&S Trade Balance April
1230 US Initial Jobless Clm Weekly
1400 US April MM Factory Orders