June 19 (Reuters) - Gold prices edged higher on
Thursday, supported by safe-haven demand amid uncertainty in the
Middle East, although gains were capped as traders assessed the
U.S. Federal Reserve's signal of a slower pace for future rate
cuts.
FUNDAMENTALS
* Spot gold was up 0.3% at $3,378.86 an ounce, as of
0033 GMT. U.S. gold futures fell 0.4% to $3,395.80.
* Geopolitical tensions remained heightened as U.S.
President Donald Trump on Wednesday refrained from confirming
whether the U.S. would join Israel's bombardment of Iranian
nuclear and missile sites, prompting residents of Tehran to
leave the city amid ongoing air strikes.
* The U.S. military has moved some aircraft and ships from
bases in the Middle East that may be vulnerable to any potential
Iranian attack, two U.S. officials told Reuters on Wednesday.
* The Fed held interest rates steady on Wednesday,
policymakers still forecast slashing rates by half-a-percentage
point this year, but have slowed the pace of future cuts.
* However, Fed Chair Jerome Powell cautioned against putting
too much weight on this outlook, warning of "meaningful"
inflation ahead as higher import tariffs loom.
* Futures on the federal funds rate, which measure the cost
of unsecured overnight loans between banks, raised the odds the
Fed would resume cutting interest rates at the September
meeting, with a roughly 64% probability.
* Signalling continued challenges in the labour market, data
showed the number of Americans filing new applications for
unemployment benefits fell last week, but remained at levels
consistent with a further loss of labour market momentum in June
and softening economic activity.
* The U.S. dollar index traded higher against most
major currencies after the Fed kept interest rates unchanged. A
higher dollar makes greenback-priced bullion more expensive.
* Elsewhere, spot silver was steady at $36.75 per
ounce, platinum rose 1% to $1,335.93, while palladium
gained 0.6% to $1,054.40.
DATA/EVENTS (GMT)
1100 UK BOE Bank Rate June