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PRECIOUS-Gold slips as Fed signals two more rate raises


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BENGALURU, June 14 (Reuters) - Gold prices inched lower onThursday as the Federal Reserve forecast two more U.S. rateincreases this year after raising rates on Wednesday, althoughlingering worries over trade tensions between Washington andBeijing prevented steeper losses.

FUNDAMENTALS

* U.S. gold futures GCcv1 for August delivery rose 0.1percent to $1,302.60 per ounce.

* The Federal Reserve raised interest rates on Wednesday, amove that was widely expected but still marked a milestone inthe U.S. central bank's shift from policies used to battle the2007-2009 financial crisis and recession. The central bank sawtwo more rate hikes in 2018 for a total of four and threeincreases in 2019. urn:newsml:reuters.com:*:nTLADHEE2K

* U.S. producer prices increased more than expected in May,leading to the biggest annual gain in nearly 6-1/2 years, thelatest sign of a gradual building up of inflation pressures. urn:newsml:reuters.com:*:nL1N1TE1ZB

* U.S. two-year Treasury yields, the maturity most sensitiveto rate hike expectations, touched their highest in nearly 10years while those on 10-year notes and 30-year bonds rose tothree-week peaks and one-week high, respectively. US/

* U.S. President Donald Trump will meet with his top tradeadvisers on Thursday to decide whether to activate threatenedtariffs on billions of dollars in Chinese goods, a senior Trumpadministration official said. urn:newsml:reuters.com:*:nL1N1TF2BU

* Trump said on Wednesday that North Korea no longer poses anuclear threat and his top diplomat offered a hopeful timelinefor a "major disarmament," despite skepticism at home thatPyongyang will abandon its nuclear weapons following this week'ssummit. urn:newsml:reuters.com:*:nL1N1TF11E

* The European Central Bank will debate on Thursday whetherto end its huge asset purchases by year-end, in what would beits biggest step towards dismantling crisis-era stimuluscredited with pulling the euro zone economy out of recession. urn:newsml:reuters.com:*:nL4N1TF4DZ

* Investors expect policy announcements from the EuropeanCentral Bank (ECB) on Thursday and Japan's central bank onFriday.

* A former Mongolian finance minister and a businessman heldsince April as part of an investigation into negotiations on theOyu Tolgoi copper and gold mine operated by Rio Tinto RIO.L have been released, court sources said. urn:newsml:reuters.com:*:nL8N1TF3AS

* South African miner TharisaTHST.L on Wednesday deepenedits exposure to Zimbabwe, saying it had bought a 26.8 percentstake in platinum group reserves for $4.5 million and couldincrease its presence greatly if conditions are right. urn:newsml:reuters.com:*:nL8N1TF0XM (Reporting by Karen Rodrigues in Bengaluru; Editing by AmruthaGayathri) ((K.Rodrigues@thomsonreuters.com; Within U.S. +1 651 848 5832,Outside U.S. +91 80 6749 9229; Reuters Messaging:K.Rodrigues.thomsonreuters.com@reuters.net))




This article appears in: Stocks , World Markets , Politics
Referenced Symbols: RIO ,



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