(Updates prices; adds comment, second byline, NEW YORK dateline)
* BoE says likely to deliver stimulus in three weeks
* Major U.S. stock indexes at fresh record highs
* Palladium firms for seventh day, reaches 8-1/2-mth high
By Marcy Nicholson and Clara Denina
NEW YORK/LONDON, July 14 (Reuters) - Gold fell to a two-week low on Thursday as global equities stayed in positive territory after the Bank of England (BoE) surprised investors by leaving interest rates unchanged.
The BoE said it was likely to deliver stimulus to the economy in three weeks, once it assessed how Britain's vote to leave the European Union has affected the economy. major U.S. stock indexes set fresh intraday record highs on investors' rosy outlook for big banks' second-quarter earnings, while the U.S. dollar .DXY fell for the third straight day. MKTS/GLOB
Spot gold XAU= fell as much as 1.7 percent to $1,319.82 an ounce, the lowest since June 30, and was down 0.8 percent at $1,332.10 by 2:42 p.m. EDT (1842 GMT).
U.S. gold GCcv1 futures settled down 0.9 percent at $1,332.2 per ounce.
"Britain has got a new prime minister, which, alongside expectations of more stimulus from the Bank of England, has brought a sense of relief to markets, so gold is easing and everything else is rising on that," Citi strategist David Wilson said.
"But the whole process of Brexit negotiations, which hasn't started yet, implies financial risks that will be supportive for the metal in the medium term."
Gold touched a two-year high of $1,374.91 last week, after Britain voted to leave the European Union, as worried investors started putting their cash into safe-haven assets.
After six weeks of gains, the metal has come under some pressure following strong U.S. non-farm payrolls data on Friday, which some took as a boost to the prospects for an interest rate increase by the U.S. Federal Reserve.
Several Fed presidents have made comments this week, including Kansas City's Esther George, a voter, who said on Thursday that higher demand for safe assets following Britain's vote to leave the European Union could push up the value of the dollar and impact U.S. growth. Fed President Dennis Lockhart, a non-voter, said the Fed should remain "cautious and patient" with any future interest rate increases as the fallout from the recent Brexit vote becomes clear. palladium XPD= rose for the seventh straight session, reaching an 8-1/2-month high at $650 an ounce.
"The gains witnessed recently can be traced back to specs covering short positions as the industrial and investment demand environment looked more favorable," said Bart Melek, head of Global Commodity Strategy for TD Securities, in a note, adding prices could test $725.
Silver XAG= fell 0.4 percent to $20.25 an ounce, while platinum XPT= was up 0.2 pct at $1,095.98.