June 11, 2020 / 9:57 AM / a month ago

PRECIOUS-Gold near 1-week high after Fed plans for long-term support

    * Fed vows to keep monetary policy easy
    * Silver falls after 3.8% jump on Wednesday
    * Markets await weekly jobless claims due later in the day

 (Recasts, adds comments, updates prices)
    By Eileen Soreng
    June 11 (Reuters) - Gold edged lower on Thursday as
investors booked profits after prices rallied to their highest
in one week on the U.S. Federal Reserve's commitment to provide
extraordinary support for the country's economy, hit by the
    Spot gold        fell 0.2% to $1,733.18 per ounce at 0930
GMT, after hitting its highest since June 2 at $1,739.68 earlier
in the session. U.S. gold futures         climbed 1.2% to
    "You have short term traders and those who jumped into the
gold market when prices were at $1,680, they are happy to take
profits at $1,740," Julius Baer analyst Carsten Menke said.
    "The market is really tossed and torn between the pessimist
and optimist and that's the main reason why we are still moving
around this 1,700 level for quite sometime now."
    On Wednesday, spot gold prices rose 1.3%, their biggest
daily percentage rise in more than a month, after the U.S.
central bank repeated its promise of continued support, and also
flagged the need to keep the key interest rate near zero through
at least 2022.             
    Large stimulus measures and low interest rates tend to
support gold, which is often considered a hedge against
inflation and currency debasement.
    "Macro uncertainty, lower interest rates and accommodative
central banks should remain long-term supports (for gold)," ANZ
analysts wrote in a note.
    As the pandemic shows no signs of slowing down, so will
uncertainty and that along with rising trade tensions should
keep strong safe-haven demand for gold, ANZ analysts said.
    Investors are waiting for U.S. weekly jobless claims data
due later in the day. While layoffs are slowing, millions still
remain unemployed, suggesting the labour market could take years
to heal from the pandemic.             
    Elsewhere, silver        declined 2.1% to $17.88 per ounce,
after rising 3.8% on Wednesday.
    Palladium        fell 1.2% to $1,924.51 per ounce, and
platinum        dipped 0.1% to $831.81.

 (Reporting by Eileen Soreng in Bengaluru. Editing by Jane
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