BENGALURU, July 28 (Reuters) - Gold held steady early on Thursday, clinging to gains from the previous session when it rose 1.5 percent to a 2-week high on a weaker dollar after the U.S. Federal Reserve left interest rates unchanged.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,338.87 an ounce at 0112 GMT. Bullion on Wednesday touched a high of $1,342.18, its best since July 14.
* U.S. gold GCcv1 rose 0.9 percent to $1,338.7 an ounce.
* The Federal Reserve left interest rates unchanged on Wednesday but said near-term risks to the U.S. economic outlook had diminished. Gold is sensitive to rising U.S. rates, which would lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
* The dollar index, which tracks the greenback against a basket of six major rivals, fell 0.4 percent to 96.589 .DXY . Earlier this week, it had risen as high as 97.569, its highest level since March.
* Japan's prime minister unveiled a surprisingly large $265 billion stimulus package on Wednesday to reflate the world's third-largest economy, adding pressure on the central bank to match the measures with monetary stimulus later this week. China's annual gold consumption is expected to be 1,200 tonnes by 2020, state-owned Shanghai Securities News reported on Wednesday, citing an estimate from a Ministry of Industry and Information Technology (MIIT) official. Barrick Gold Corp ABX.TO , the world's largest gold producer, reported a rise in second-quarter profit on Wednesday and said it plans to sell its 50 percent stake in a western Australia mine to cut debt. Palladium has soared 17 percent so far in July, its best monthly performance in almost 8-1/2 years, as it catches up on gains made by other precious metals in the wake of the Brexit vote and benefits from greater demand for cyclical assets. Randgold Resources' RRS.L Loulo-Gounkoto gold mining complex in Mali is currently on track to beat its 2016 production guidance, CEO Mark Bristow told reporters late on Wednesday. For the top stories on metals and other news, click TOP/MTL or GOL
MARKET REPORT
* Asian stocks edged up early on Thursday after the Federal Reserve provided an positive assessment of the world's largest economy and lifted risk sentiment. MKTS/GLOB
DATA AHEAD (GMT)
0755 Germany Unemployment rate July
0900 Euro zone Business climate July
1200 Germany Consumer prices July
1230 U.S. Weekly jobless claims
1230 U.S. Advance goods trade balance June