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Gold recovers from 9-month low, but higher yields weigh

Published 04/03/2021, 12:23 pm
Updated 04/03/2021, 12:24 pm
© Reuters.
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March 4 (Reuters) - Gold prices edged up on Thursday to recover from a near nine-month low hit in the previous session, although higher U.S. Treasury yields continued to weigh on the non-yielding bullion's appeal.

FUNDAMENTALS

* Spot gold XAU= was up 0.2% at $1,714.27 per ounce by 0051 GMT, having dropped to their lowest since June 9 at $1,701.40 on Wednesday. U.S. gold futures GCv1 dipped 0.2% to $1,712.80.

* Benchmark U.S. Treasury yields held near 1.5%, increasing the opportunity cost of holding bullion, which pays no returns. US/

* The U.S. economic recovery continued at a modest pace over the first weeks of this year, the Federal Reserve reported on Wednesday. Chicago Fed President Charles Evans on Wednesday said he sees the recent rapid rise in bond yields as mostly reflecting improvements in the economy. U.S. private payrolls increased less than expected in February, suggesting the labor market was continuing to struggle. The U.S. Senate delayed the start of debate on a $1.9 trillion COVID-19 relief bill until at least Thursday. Investors now await Fed Chair Jerome Powell's speech before a virtual Wall Street Journal Jobs Summit at 1705 GMT, for clues on the outlook of the central bank's monetary policy. Perth Mint's gold sales surged in February to their highest in at least nine years, while silver sales also jumped, the refiner said in a blog post on Wednesday. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD fell 0.4% to 1,082.38 tonnes on Wednesday. GOL/ETF

* Silver XAG= rose 0.4% to $26.18 an ounce, while palladium XPD= eased 0.3% at $2,347.52. Platinum XPT= shed 0.5% to $1,161.50.

DATA/EVENTS (GMT) 1000 EU

Unemployment Rate

Jan 1330 US

Initial Jobless Clm

Weekly 1500 US

Factory Orders MM

Jan 1705 US

Fed Chair Jerome Powell participates in conversation on the U.S. economy before virtual Wall Street Journal Jobs Summit

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