Gold edged higher on Wednesday, buoyed by a weaker dollar after Federal Reserve officials dampened expectations that the U.S. central bank may soon exit its bullion-friendly bond purchases.
* Spot gold rose 0.3 percent to $1,379.56 an ounce by 0108 GMT, but remains not far off a two-year low. Spot silver gained 1 percent to $22.61 an ounce, regaining more ground after dropping to 2-1/2-year lows earlier this week.
* U.S. gold was little changed at $1,378.80 an ounce.
* Gold has been pressured in recent weeks by fears the Federal Reserve could scale back or halt its monthly $85 billion bond purchases that have buoyed bullion's appeal as a hedge against inflation.
* But New York Fed President William Dudley and St. Louis Fed chief James Bullard, who will both vote at the June 18-19 meeting, made clear further economic progress was needed before they would support curtailing bond purchases.
* Investors are eyeing Fed Chairman Ben Bernanke's testimony in Congress about the state of the U.S. economy later in the day for clues to his stance on ending the monetary stimulus this year. The Federal Open Market Committee also releases the minutes of its April 30-May 1 meeting.
* Gold's recent slump could have much further to run, with a breach of its April low of $1,321.35 potentially setting up bigger losses towards levels not seen since mid-2010, according to chart analysts.
* The Bank of Japan may front-load bond purchases or offer funds via market operations more frequently if bond market turbulence persists, hoping it can prevent a renewed spike in yields by fine-tuning market operations.
* Holdings of the largest gold-backed exchange-traded-fund, New York's SPDR Gold Trust fell 0.8 percent on Tuesday to 1,023.08 tonnes, the lowest in more than four years.
* Spot gold rose 0.3 percent to $1,379.56 an ounce by 0108 GMT, but remains not far off a two-year low. Spot silver gained 1 percent to $22.61 an ounce, regaining more ground after dropping to 2-1/2-year lows earlier this week.
* U.S. gold was little changed at $1,378.80 an ounce.
* Gold has been pressured in recent weeks by fears the Federal Reserve could scale back or halt its monthly $85 billion bond purchases that have buoyed bullion's appeal as a hedge against inflation.
* But New York Fed President William Dudley and St. Louis Fed chief James Bullard, who will both vote at the June 18-19 meeting, made clear further economic progress was needed before they would support curtailing bond purchases.
* Investors are eyeing Fed Chairman Ben Bernanke's testimony in Congress about the state of the U.S. economy later in the day for clues to his stance on ending the monetary stimulus this year. The Federal Open Market Committee also releases the minutes of its April 30-May 1 meeting.
* Gold's recent slump could have much further to run, with a breach of its April low of $1,321.35 potentially setting up bigger losses towards levels not seen since mid-2010, according to chart analysts.
* The Bank of Japan may front-load bond purchases or offer funds via market operations more frequently if bond market turbulence persists, hoping it can prevent a renewed spike in yields by fine-tuning market operations.
* Holdings of the largest gold-backed exchange-traded-fund, New York's SPDR Gold Trust fell 0.8 percent on Tuesday to 1,023.08 tonnes, the lowest in more than four years.
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