BENGALURU, May 19 (Reuters) - Gold was trading near a
three-week low on Thursday as the dollar stood tall after
minutes from the Federal Reserve policy meeting showed the U.S.
central bank could raise rates as soon as next month.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,258 per ounce at
0038 GMT. The metal fell 1.7 percent in the previous session,
hitting a three-week low of $1,254.65.
* U.S. gold futures GCcv1 fell 1.2 percent to $1,259.30.
* Fed officials felt the U.S. economy could be ready for
another interest rate increase in June, according to the minutes
from the central bank's April policy meeting released on
Wednesday.
* The suggestion that a rate increase in June is firmly on
the table suggests the Fed is closer to tightening monetary
policy again than Wall Street had expected. The Fed lifted rates
in December for the first time in nearly a decade.
* Gold is highly sensitive to rising interest rates, which
increase the opportunity cost of holding it. It has rallied
nearly 20 percent this year on expectations that the Fed has
slowed the pace of rate hikes due to global uncertainty.
* The dollar raced to multi-week highs on Wednesday after
the release of the Fed minutes. A stronger greenback makes
dollar-denominated gold more expensive for holders of other
currencies. USD/
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.56 percent to
855.89 tonnes on Tuesday. GOL/ETF
* China's ICBC Standard Bank has let go three precious
metals traders in New York and will move its Dubai business to
London, concentrating its activities in Europe and Asia, four
sources with knowledge of the matter said.
* Thailand will formally notify the Australian operator of
the country's only active gold mine by the end of May of a
government order to halt operations, a senior industry ministry
official said on Wednesday.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian stocks slipped but the dollar was buoyant early on
Thursday as markets scrambled to factor in a near-term U.S.
interest rate hike. MKTS/GLOB
* Oil prices retreated from 2016 highs and snapped a two-day
rally on Wednesday, hurt by a surge in the dollar. O/R
DATA AHEAD (GMT)
1230 US weekly jobless claims
1230 US Philly Fed Business Index for May