March 18 (Reuters) - Gold prices rose on Thursday, as the
dollar weakened after the U.S. Federal Reserve kept the interest
rate unchanged and reiterated its stance to keep benchmark rates
near-zero through at least 2023.
FUNDAMENTALS
* Spot gold XAU= rose 0.5% to $1,752.41 per ounce by 0119
GMT, while U.S. gold futures GCv1 rose 1.3% to $1,748.80 per
ounce.
* The U.S. central bank said on Wednesday that the economy
is on track for its fastest expansion in nearly 40 years, but
its policymakers pledged to keep their foot on the gas despite
an expected surge in inflation. * Lower interest rates reduce the opportunity cost of
holding the non-yielding bullion and weigh on the dollar.
* The dollar index dropped 0.5% to 91.405, making the
greenback-denominated metal cheaper for non-U.S. investors.
USD/
* U.S. Treasuries yields on the longer end of the curve
remained elevated, while yields on shorter-term debt fell on
Wednesday after the Federal Reserve's views. US/
* Asian stocks were set for modest gains. MKTS/GLOB
* A Reuters poll showed two-thirds of Japanese businesses
expect the Bank of Japan to limit long-term interest rate rises
and keep them stable, ahead of the central bank's analysis this
week. * Officials say the U.S. will take an uncompromising stand
in talks with China on Thursday in Alaska, in the first
face-to-face meetings between senior officials from the two
rivals since U.S. President Joe Biden took office. * Silver XAG= rose 0.7% to $26.51, platinum XPT= was up
0.6% at $1,220.78 and palladium XPD= climbed 1.3% to $2,601.85
DATA/EVENTS AHEAD (GMT)
1200 UK BOE Bank Rate March
1200 UK GB BOE QE Corp March
1230 US Initial Jobless Claim weekly
1230 US Philly Fed Business Index March
Japan Bank of Japan to hold Monetary Policy Meeting