Gold Update

Spot gold holds at $658.30/oz, after trading in a tight $658.20 to $661.85 range.

Gold remains firm partly due to a underlying negativedollar bias, with players thinking the Fed's accompanying statement maymake mentions of sub-prime mortgage woes and other economic concerns.

Any mention of elevated economic risks would no doubt prompt marketsto assign a greater probability to a Fed easing in the second half of the year, applying downward pressure on the greenback and spurring investment demand for the metal as a hedge against a dropping dollar.