CORRECTED-PRECIOUS-Gold hits over 5-year high as Fed hints at rate cuts

(Corrects dateline)
June 20 (Reuters) - Gold prices jumped to their highest
level in more than five years on Thursday, after the U.S.
Federal Reserve signalled possible interest rate cuts later this
year.

FUNDAMENTALS
* Spot gold XAU= was up 1.3% at $1,377.41 per ounce as of
0117 GMT, after hitting its highest since March 17, 2014 at
$1,383.81.
* U.S. gold futures GCcv1 surged 3% to $1,397.70 an ounce.
* The Fed held interest rates steady, as expected, but said
it "will act as appropriate to sustain" the country's economic
expansion as it approaches the 10-year mark and dropped a
promise to be "patient" in adjusting rates. * The bulk of Fed policymakers slashed their rate outlook
for the rest of the year by roughly half a percentage point, and
Fed Chairman Jerome Powell said others agree the case for lower
rates is building.
* The market expects the Fed to cut rates as soon as next
month.
* The dollar index .DXY fell to a near one-week low on
Thursday after the Fed signalled a possible rate cut by the end
of the year, while 10-year U.S. Treasury yield US10YT=RR
dropped to its lowest level in nearly two years. USD/ US/
* U.S. Trade Representative Robert Lighthizer said he will
confer with his Chinese counterpart Vice Premier Liu He before
next week's meeting between President Donald Trump and Chinese
President Xi Jinping in Osaka. * A gauge of global stock markets edged near this year's
peak after the Fed hinted possible interest rate cuts later this
year. MKTS/GLOB
* Turkey's Treasury said on Wednesday it had collected eight
tonnes and 10 kilograms of gold from institutional investors for
a gold-denominated sukuk issue. DATA AHEAD (GMT)
* 0230 Japan Bank of Japan Governor Haruhiko Kuroda
speaks to reporters at the end of the central bank policy
meeting
* Japan JP BOK Rate Decision
* 1100 UK BOE Bank Rate June
* 1100 UK GB BOE QE Corp June