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PRECIOUS-Gold eases as soft inflation data dents appeal

Published 11/02/2021, 12:22 pm
Updated 11/02/2021, 12:24 pm
© Reuters.
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Feb 11 (Reuters) - Gold inched lower on Thursday as weaker U.S. inflation data diminished bullion's appeal, although a softer dollar and lower Treasury yields kept the losses in check.

FUNDAMENTALS

* Spot gold XAU= fell 0.1% to $1,839.61 per ounce by 0055 GMT. Prices scaled their highest in more than a week in the previous session. U.S. gold futures GCv1 slipped 0.1% to $1,841.50.

* U.S. consumer prices rose moderately in January as higher gasoline prices were blunted by a slump in airline fares amid a relentless pandemic, tempering expectations for a sustained acceleration in inflation this year. Gold is considered a hedge against inflation.

* Benchmark U.S. Treasury yields tumbled to a one-week low on Wednesday, while the dollar .DXY slipped to two-week lows after the tepid U.S. inflation data. USD/ US/

* U.S. Federal Reserve Chair Jerome Powell on Wednesday called for a broad national effort to get Americans back to work after the pandemic. India's gold imports in January surged 72% from a year earlier, a government source said on Wednesday, as a correction in prices from a record high drew retail buyers and jewellers. Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust GLD fell 0.15% to 1,146.60 tonnes on Wednesday. GOL/ETF

* Platinum and palladium used by the auto industry to filter emissions from engine exhausts were all in short supply last year, data from specialist materials firm Johnson Matthey (LON:JMAT) showed on Wednesday. Platinum XPT= fell 1.2% to $1,227.08 an ounce, having hit its highest since February 2015 at $1,250 on Wednesday as hopes firmed that an economic recovery would boost auto sales.

* CME Group Inc CME.O raised margins for NYMEX platinum futures by 10% to their highest since March 2020. Spot silver XAG= shed 0.4% to $26.89 and palladium XPD= eased 0.2% to $2,351.24.

DATA/EVENTS (GMT) 1330 US Initial Jobless Clm Weekly

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