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.
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