SINGAPORE, March 18 (Reuters) - Gold edged higher on Friday
as the dollar hovered near its lowest in five months, under
pressure from the Federal Reserve's plan to make fewer interest
rate hikes than expected last year.
FUNDAMENTALS
* Spot gold XAU= rose 0.2 percent to $1,259.30 an ounce by
0038 GMT, while U.S. gold GCcv1 slid 0.4 percent to $1,260.40
an ounce. Spot gold close 0.4 percent lower in the last session.
* The yen stood within reach of a 17-month high against the
dollar with the Federal Reserve's cautious stance towards hiking
interest rates continuing to take a toll on the U.S. currency.
USD/
* The U.S. central bank held interest rates steady and
indicated it would tighten policy this year, but fresh
projections showed policymakers expect two quarter-point
increases by year-end, half the number forecast in December.
* Expectations the Fed would raise rates steadily this year
had faded since the bank's initial hike in December, as concerns
over global growth roiled financial markets.
* Rising rates tend to pressure gold by lifting the
opportunity cost of holding non-yielding bullion, while boosting
the dollar, in which it is priced.
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TOP/MTL or GOL
MARKET NEWS
* The U.S. dollar index dropped to a five-month low on
Thursday while shares on Wall Street rallied to lead global
equities higher as a dovish U.S. Federal Reserve emboldened
investors to take on more risk. MKTS/GLOB
DATA AHEAD (GMT)
0700 Germany Producer prices Feb
1000 Euro zone Labour costs Q4
1400 U.S. Univ of Michigan sentiment index Mar