iStockGold prices firmed on Tuesday as a decline in U.S. Treasury yields offset pressure on greenback-priced bullion from sustained strength in the dollar.
FUNDAMENTALS
* Spot gold was up about 0.1% at $1,854.91 per ounce, as of 0055 GMT. U.S. gold futures were down 0.2% at $1,854.10.
* Benchmark 10-year U.S. Treasury yields extended declines on Tuesday after pulling back from their highest level in 3-1/2 years in the previous session, buoying prices of zero-yield gold. [US/]
* The dollar held steady near a fresh 20-year high scaled on Monday on risk-off sentiment stemming in part from concerns over the U.S. Federal Reserve's ability to combat high inflation boosted the greenback's safe-haven appeal. [USD/]
* This made greenback-priced and rival safe-haven bullion less attractive for other currency holders, and continued to restrain gold prices after pushing them 1% lower in the previous session.
* Federal Reserve President Raphael Bostic on Monday said he expects the U.S. to deliver two or three more half-percentage-point interest rate hikes but won't need to use anything bigger, noting some hopeful signs on inflation.
* While gold is seen as a safe store of value during times of political and economic crises, it is highly sensitive to rising short-term U.S. interest rates and bond yields, which raise the opportunity cost of holding bullion.
* Russian President Vladimir Putin exhorted Russians to battle in a defiant Victory Day speech on Monday, but was silent about plans for any escalation in Ukraine, despite Western warnings he might use his Red Square address to order a national mobilisation.
* Spot silver slipped 0.1% to $21.77 per ounce, fell 0.5% to $951.10, while palladium gained 0.3% to $2,102.74.
DATA/EVENTS (GMT)
0130 Australia Retail Trade Q1
0900 Germany ZEW Economic Sentiment May
0900 Germany ZEW Current Conditions May
FUNDAMENTALS
* Spot gold was up about 0.1% at $1,854.91 per ounce, as of 0055 GMT. U.S. gold futures were down 0.2% at $1,854.10.
* Benchmark 10-year U.S. Treasury yields extended declines on Tuesday after pulling back from their highest level in 3-1/2 years in the previous session, buoying prices of zero-yield gold. [US/]
* The dollar held steady near a fresh 20-year high scaled on Monday on risk-off sentiment stemming in part from concerns over the U.S. Federal Reserve's ability to combat high inflation boosted the greenback's safe-haven appeal. [USD/]
* This made greenback-priced and rival safe-haven bullion less attractive for other currency holders, and continued to restrain gold prices after pushing them 1% lower in the previous session.
* Federal Reserve President Raphael Bostic on Monday said he expects the U.S. to deliver two or three more half-percentage-point interest rate hikes but won't need to use anything bigger, noting some hopeful signs on inflation.
* While gold is seen as a safe store of value during times of political and economic crises, it is highly sensitive to rising short-term U.S. interest rates and bond yields, which raise the opportunity cost of holding bullion.
* Russian President Vladimir Putin exhorted Russians to battle in a defiant Victory Day speech on Monday, but was silent about plans for any escalation in Ukraine, despite Western warnings he might use his Red Square address to order a national mobilisation.
* Spot silver slipped 0.1% to $21.77 per ounce, fell 0.5% to $951.10, while palladium gained 0.3% to $2,102.74.
DATA/EVENTS (GMT)
0130 Australia Retail Trade Q1
0900 Germany ZEW Economic Sentiment May
0900 Germany ZEW Current Conditions May
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