June 11 (Reuters) - Gold prices touched a more than one-week high on Thursday, as bleak economic projections from the U.S. Federal Reserve boosted demand for the safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= 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.
* U.S. gold futures GCv1 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 U.S. central bank repeated its promise of continued extraordinary support, estimating the U.S. 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 U.S. dollar and most Wall Street shares lower. MKTS/GLOB USD/ .N
* In the U.S., 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 U.S. 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 GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.4% to 1,129.50 tonnes. GOL/ETF
* Palladium XPD= fell 0.9% to $1,929.96 per ounce and silver XAG= declined 1.7% to $17.95, while platinum XPT= rose 0.5% to $836.38.
DATA/EVENTS (GMT)
1230 US Initial Jobless Claims Weekly 1600 US Federal Reserve releases figures on the financial health of U.S. household in its Flow of Funds report for Q1