SINGAPORE, April 8 (Reuters) - Gold held near a two-week
high on Friday and was set to post its strongest week in five as
the Federal Reserve's caution over raising U.S. interest rates
and weakness in the dollar burnished the metal's appeal.
FUNDAMENTALS
* Spot gold XAU= had eased 0.3 percent to $1,237.10 an
ounce by 0048 GMT, but was not too far from a two-week high of
$1,243.50 hit in the previous session. For the week, the metal
has gained 1.3 percent.
* The dollar slumped to a 17-month low against the yen on
Thursday on a cautious Fed, while global growth concerns knocked
down equities. MKTS/GLOB
* Minutes from the Fed's March policy meeting released on
Wednesday showed policymakers debated whether an interest rate
hike would be needed in April, although a consensus emerged that
risks from a global economic slowdown warranted a cautious
approach.
* A slower pace in hiking rates would boost
non-interest-paying gold, while hurting the dollar.
* Markets were closely watching comments from Fed officials
for clues about the timing of any rate hikes.
* Gold rose 16 percent in the first quarter of the year, its
best quarterly performance in nearly 30 years, on speculation
the Fed may delay hiking rates.
* The U.S. economy is on a solid course and still on track
to warrant further interest rate hikes, Fed Chair Janet Yellen
said on Thursday.
* San Francisco Fed President John Williams said Thursday
that at least two interest-rate hikes this year is the "right
course" so long as the U.S. economy continues to grow,
businesses add jobs, and inflation picks up as he expects.
* The Fed could stoke financial instability and set the
stage for a recession if it waits too long to raise interest
rates further, Kansas City Fed President Esther George said on
Thursday.
* A steep rise in gold prices may have given hope to a
battered mining industry in 2016, but after four tough years
producers in Africa are still too wary to call the bad times
over.
* For the top stories on metals and other news, click
TOP/MTL or GOL
DATA AHEAD (GMT)
0600 Germany Trade data Feb
0645 France Industrial output Feb
0830 Britain Industrial output Feb
1400 U.S. Wholesale inventories Feb
PRICES AT 0048 GMT
Metal Last Change Pct chg
Spot gold 1237.1 -3.19 -0.26
Spot silver 15.196 -0.014 -0.09
Spot platinum 956.1 4.1 0.43
Spot palladium 535.5 2.5 0.47
Comex gold 1239.2 1.7 0.14
Comex silver 15.19 0.032 0.21
COMEX gold and silver contracts show the
most active months