June 18 (Reuters) - Gold prices held steady on
Wednesday, as escalating tensions between Israel and Iran
entered their sixth day, while a stronger dollar capped gains
ahead of the U.S. Federal Reserve's policy decision due later in
the day.
FUNDAMENTALS
* Spot gold was steady at $3,386.59 an ounce, as of
0052 GMT. U.S. gold futures were also stable at
$3,405.20.
* Iran and Israel launched new missile strikes at each other
on Wednesday as the air war between the two longtime enemies
entered a sixth day despite a call from U.S. President Donald
Trump for Iran's unconditional surrender.
* Trump warned on social media on Tuesday that U.S. patience
was wearing thin.
* Meanwhile, the U.S. is deploying more fighter aircraft to
the Middle East and extending the deployment of other warplanes,
three U.S. officials told Reuters.
* The U.S. dollar index strengthened against major
currencies, making dollar-priced bullion more expensive for
holders of other currencies.
* Federal Reserve officials met on Tuesday armed with new
economic data that could give more weight to their concerns that
Trump administration policies, or at least the intense
uncertainty around them, will slow growth in the coming months.
* U.S. retail sales dropped more than expected in May,
weighed down by a decline in motor vehicle purchases as a rush
to beat potential tariff-related price hikes ebbed, but consumer
spending remains supported by solid wage growth for now.
* The Fed is widely expected to leave its benchmark
overnight interest rate unchanged in the 4.25%-4.50% range.
* Investors will watch closely for Fed Chair Jerome Powell's
remarks following the decision for signals on the future
monetary policy path.
* Elsewhere, spot silver was down 0.3% at $37.14 per
ounce, platinum rose 0.2% to $1,264.63, while palladium
fell 0.4% to $1,047.50.
DATA/EVENTS (GMT)
0600 UK Core CPI, CPI YY May
0600 UK CPI Services MM, YY May
0900 EU HICP Final MM, YY May
1230 US Housing Starts Number May
1230 US Initial Jobless Clm 14 Jun, w/e
(Reporting by Anmol Choubey in Bengaluru; Editing by Sherry
Jacob-Phillips)
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