Gold eases; set for third weekly gain on weak dollar, inflation jitters

Gold edged lower on Friday, as optimism around a swift economic recovery lifted appeal for riskier assets

Topics
Gold Prices | US Dollar | US Inflation

Reuters 

Gold
Gold

(Reuters) - Gold edged lower on Friday, as optimism around a swift economic recovery lifted appeal for riskier assets, although a weaker dollar and growing inflationary pressure limited losses and kept bullion on track for a third straight weekly rise.

FUNDAMENTALS

* Spot gold was down 0.2% at $1,872.21 per ounce by 0126 GMT, but it has risen 1.6% this week.

* U.S. gold futures fell 0.4% to $1,873.70 per ounce.

* The dollar was pinned near milestone lows against its rivals and was headed for a weekly loss. A weaker greenback makes gold more appealing for other currency holders. [USD/]

* Benchmark 10-year Treasury yields fell to 1.6340% overnight. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.

* Risk sentiment in wider financial remained upbeat after strong U.S. jobs data lifted hopes around a quick economic recovery. [MKTS/GLOB]

* Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week.

* Japan's core consumer prices slid for the ninth straight month in April, as a record slump in cellphone fees offset rising energy prices.

* Britain's economy will grow much faster than expected this year as a fast-moving coronavirus vaccine programme allows businesses to re-open and lifts confidence, a Reuters poll found.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.6% to 1,037.09 tonnes on Thursday from 1,031.27 tonnes on Wednesday. [GOL/ETF]

* Palladium gained 0.5% to $2,865.73 per ounce, silver eased 0.1% to $27.72, while platinum edged 0.4% higher to $1,200.57.

DATA/EVENTS (GMT)

0600 UK Retail Sales MM, YY April

0800 EU Markit Mfg, Serv, Comp Flash PMIs May

0830 UK Flash Comp, Mfg, Serv PMIs May

1345 US Markit Mfg, Serv, Comp Flash PMIs May

1400 US Existing Home Sales April

1400 EU Consumer Confid. Flash May

 

(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, May 21 2021. 08:23 IST
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