Gold prices touched a more than one-week high on Thursday, as bleak economic projections from the US Federal Reserve boosted demand for the safe-haven metal.

FUNDAMENTALS

• Spot gold was down 0.2% at $1,732.56 per ounce, as of 0114 GMT, after hitting its highest level since June 2 earlier in the session.

• US gold futures climbed 1.2% to $1,741.90.

• On Wednesday, gold rose 1.3%- its largest daily percentage rise in over a month.

• On Wednesday, the US central bank repeated its promise of continued extraordinary support, estimating the US economy to shrink by 6.5% in 2020 and the unemployment rate to be at 9.3% at year's end.

• Fed officials also flagged the need to keep the key interest rate near zero through at least 2022.

• Large stimulus measures and low interest rates tend to support gold, which is often considered a hedge against inflation and currency debasement.

• Asian equities were set to fall on Thursday after gloomy economic projections from the Fed sent the US dollar and most Wall Street shares lower.

• In the US, coronavirus cases rose over 2 million on Wednesday. New infections are rising slightly after five weeks of declines, however, part of the increase is due to more testing.

• White House Economic Adviser Larry Kudlow said the US economy appears to have hit a turning point after rapidly plunging into a recession due to the coronavirus pandemic about three months ago.

• SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.4% to 1,129.50 tonnes.

• Palladium fell 0.9% to $1,929.96 per ounce and silver declined 1.7% to $17.95, while platinum rose 0.5% to $836.38.