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PRECIOUS-Gold eases as firmer U.S. Treasury yields weigh

Published 25/02/2021, 12:15 pm
© Reuters.
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Feb 25 (Reuters) - Gold prices edged lower on Thursday as higher U.S. Treasury yields dented the metal's appeal, although losses were limited by a weaker dollar and Federal Reserve Chairman Jerome Powell's dovish comments.

FUNDAMENTALS

* Spot gold XAU= fell 0.3% to $1,798.71 per ounce by 0059 GMT. U.S. gold futures GCv1 gained 0.2% to $1,801.20.

* Powell, testifying before the House of Representatives Financial Services Committee, continued adding weight to the U.S. central bank's promise to get the economy back to full employment, and to not worry about inflation unless prices begin rising in a persistent and troubling way. Benchmark U.S. Treasury yields hovered near a one-year peak hit in the previous session. Higher yields increase the opportunity cost of holding non-yielding bullion. US/

* The dollar languished near three-year lows versus riskier currencies. USD/

* Central bankers worldwide have been unequivocal that there are no plans to cut back on money-printing any time soon, or raise interest rates, but markets do not seem to be buying it. The first big real-world study of the Pfizer/BioNTech vaccine to be independently reviewed shows the shot is highly effective at preventing COVID-19, in a potentially landmark moment for countries desperate to end lockdowns and reopen economies. Sales of new U.S. single-family homes increased more than expected in January, boosted by historically low mortgage rates and an acute shortage of previously owned houses on the market. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,106.36 tonnes on Wednesday from 1,110.44 tonnes on Tuesday. GOL/ETF

* Silver XAG= slipped 0.7% to $27.79 an ounce. Platinum XPT= fell 1.1% to $1,254, while palladium XPD= eased 0.1% to $2,433.33. DATA/EVENTS (GMT) 1000 EU Consumer Confid. Final Feb 1330 US Durable Goods

Jan 1330 US GDP 2nd Estimate

Q4 1330 US Initial Jobless Clm

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