SINGAPORE, March 17 (Reuters) - Gold ticked lower on
Thursday as the market took a breather after rallying 2.5
percent in the previous session following the Federal Reserve's
decision to cut the number of planned interest rate hikes,
adding to pressure on the dollar.
FUNDAMENTALS
* Spot gold XAU= slid 0.2 percent to $1,259.61 an ounce by
0035 GMT after notching its biggest one-day rally in five weeks
on Wednesday to a high of $1,264 an ounce.
* U.S. gold GCcv1 jumped 2.5 percent to $1,260.7 an ounce
after settling down 0.1 percent in the last session prior to the
Fed statement.
* Asian shares gained early and the dollar was on the
defensive after suffering substantial losses following the U.S.
Federal Reserve's move to reduce the number of interest rate
hikes planned for this year. MKTS/GLOB
* The U.S. central bank held interest rates steady after its
two-day meeting, as expected. However, fresh projections from
policymakers showed they expected two quarter-point rate hikes
by year's end.
* Volatility in equities and oil prices, a raft of mixed
economic data, and concerns over global growth had curbed
expectations for further hikes, allowing gold to rise almost 19
percent this year.
* Gold is highly sensitive to the prospect of rising rates,
which lift the opportunity cost of holding non-yielding bullion,
while boosting the dollar, in which it is priced.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* The dollar nursed losses in Asian trading on Thursday
after declining sharply following the U.S. Federal Reserve's
decision to halve its outlook for interest rate hikes to two
from four by the end of this year. USD/
* U.S. oil prices jumped almost 6 percent on Wednesday,
erasing losses of the past two days, after major producers
firmed up plans to meet in Qatar to discuss an output freeze and
U.S. crude stockpiles grew less than expected. O/R
DATA AHEAD (GMT)
1000 Euro zone Eurostat trade Jan
1200 Bank of England interest rate decision
1230 U.S. Weekly jobless claims
1230 U.S. Philly Fed business index Mar
1400 U.S. Leading index Feb