PRECIOUS-Gold scales over 1-month peak on mounting economic worries
June 13 (Reuters) - Gold prices hit a more than one-month high on Monday, carrying momentum from a sharp gain in the previous session on concerns over a potential blow to the U.S. economy from an aggressive Federal Reserve approach to combating inflation.
* Spot gold XAU= firmed 0.1% to $1,872.53 per ounce, as of 0059 GMT, while U.S. gold futures GCv1 edged 0.1% higher to $1,876.60.
* Gold is seen as a safe-haven in times of economic crises, and hit its highest since May 9 earlier in the session at $1,877.05 per ounce.
* However, benchmark U.S. 10-year Treasury yields US10YT=RR also rose to their highest since May 9, capping demand for zero-yield gold. US/
* Also limiting gains in greenback-priced gold, the dollar =USD climbed to its highest in nearly four weeks. USD/
* Gold prices saw volatile trading on Friday, as focus turned to economic risks after elevated U.S. inflation readings bolstered bets for aggressive interest rate hikes.
* Global equity markets slumped and the dollar strengthened on Friday after a bigger-than-expected U.S. inflation spike in May raised concerns the Federal Reserve may tighten policy for too long and cause a sharp slowdown. MKTS/GLOB
* U.S. consumer prices accelerated in May, suggesting that the country's central bank could continue with its 50 basis points interest rate hikes through September to combat inflation. nL1N2XX118
* It's a central-bank heavy week ahead, with the Fed expected to deliver its second straight half-point rate hike to bring inflation under control. nL8N2XW164
* Bullion is often seen as an inflation hedge, but the opportunity cost of holding it is higher when the Fed raises short-term interest rates, as gold yields no interest.
* Spot silver XAG= dipped 0.9% to $21.68 per ounce, platinum XPT= fell 0.6% to $967.67, and palladium XPD= dropped 1.3% to $1,909.49.
DATA/EVENTS (GMT, April)
0600 UK GDP Est 3M/3M
0600 UK GDP Estimate MM, YY
0600 UK Manufacturing Output MM
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Rashmi Aich)
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