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PRECIOUS-Gold flat as U.S. yields negate firmer dollar

05/10/2021 21:52
PRECIOUS-Gold flat as U.S. yields negate firmer dollar

- Gold prices were steady on Tuesday as a retreat in U.S. Treasury yields countered a slight rebound in the dollar, while investors awaited key data on inflation due later this week.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,836.26 per ounce by 0134 GMT, after hitting its highest since Feb. 11 at $1,842.91 on Friday.

* U.S. gold futures GCv1 were down 0.1% at $1,836.40 per ounce.

* The dollar index .DXY was up 0.1%, making gold more expensive for other currency holders. USD/

* The U.S. currency slipped to a more than two-month low in the previous session after U.S. non-farm payrolls data on Friday showed jobs growth unexpectedly slowed in April. nL1N2MT2XD

* Benchmark U.S. 10-year Treasury yields US10YT=RR were pinned below 1.6%. Lower bond yields reduce the opportunity cost of holding non-yielding gold. US/

* Bank of Japan policymakers warned of uncertainties over the country's economic recovery as pandemic curbs hurt service consumption, a summary of their opinions voiced at an April policy meeting showed on Tuesday. nL4N2MY02R

* Market participants awaited the release of U.S. consumer price data due on Wednesday to gauge inflationary pressure and the Federal reserve's policy stance.

* Fed officials would like to see higher inflation, more wage growth and several months of strong employment gains averaging 1 million jobs added before they would consider adjusting monetary policy, Chicago Fed Bank President Charles Evans said on Monday. nN9N2JM007

* U.S. President Joe Biden on Monday urged U.S. companies to help workers gain access to vaccines and to raise their pay while touting an infusion of $350 billion in federal aid to state and local governments. nL1N2MX1EG

* Palladium XPD= fell 0.2% to $2,953.59 per ounce.

* Silver XAG= was little changed at $27.31 per ounce, while platinum XPT= was down 0.4% at $1,242.17.

DATA/EVENTS (GMT)

0900 Germany ZEW Economic Sentiment May

0900 Germany ZEW Current Conditions May

1400 US JOLTS Job Openings March


(Reporting by Shreyansi Singh in Bengaluru; Editing by Subhranshu Sahu)

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