Gold hits six-week high as Fed indicates cautious approach to rate hikes

Gold touched a six-week high early on Thursday as the US Federal Reserve signalled it could be less aggressive in tightening monetary policy next year. * Spot gold XAU= had risen 0.4 percent to $1,296.10 an ounce at 0054 GMT. Bullion touched a session-peak of $1,297.70, its highest since May 3. * US gold GCcv1 climbed 0.9 percent to $1,299.40 * The US Federal Reserve kept interest rates unchanged on Wednesday and signalled it still planned to raise rates twice in 2016, though it said slower economic growth would crimp the pace of monetary policy tightening in future years. * A small majority of Wall Street’s top banks expect the Fed to raise interest rates no more than once this year, results of a Reuters poll showed Wednesday. * The Bank of Japan is expected to keep monetary policy steady on Thursday even as volatile financial markets, sluggish global growth and anaemic inflation keep policymakers under pressure to do more to reflate the economy out of stagnation. * Holdings in SPDR Gold Trust (GLD), the world’s largest gold-backed exchange-traded fund, rose 0.23 percent to 900.75 tonnes on Wednesday, the highest since October 2013. [GOL/ETF] * South Africa’s Northam Platinum (NHMJ.J) lost 15 million rand ($983,026) a day in revenue during a week-long work stoppage at Zondereinde mine, a company spokeswoman said on Wednesday. * A run of strong Thai exports this year should be welcome news for the trade-dependent economy, but rather than reflecting healthy shipments of goods such as cars or textiles speculative gold sales have often had an outsized influence. * Russia’s Polymetal (POLYP.L) plans to borrow $350 million from Sberbank (SBER.MM) to finance the development of its Kazakh gold field Kyzyl, chief executive Vitaly Nesis told reporters in Astana on Wednesday. * For the top stories on metals and other news, click [TOP/MTL] or [GOL] MARKET REPORT * Asian stocks edged up on Thursday after the Fed Reserve refrained from hiking interest rates, while the dollar sagged against its peers. [MKTS/GLOB][USD/] DATA AHEAD (GMT) 0900 Euro zone inflation final May 1100 Bank of England announces interest rate decision 1230 US consumer prices May 1230 US weekly jobless claims 1230 US Philly Fed business index Jun 1400 US NAHB housing market index Jun Source: The Himalayan Times