Feb 26 (Reuters) - Gold prices hit their lowest in a week on Friday and headed for a second straight weekly decline as higher U.S. Treasury yields sapped the appeal of non-yielding bullion.
FUNDAMENTALS
* Spot gold XAU= was steady at $1,770.15 per ounce by 0046 GMT, having earlier fallen to its lowest since Feb. 19 at $1,764.90. Prices were down 0.6% for the week so far.
* U.S. gold futures GCv1 fell 0.5% to $1,767.10.
* Gold dropped 1.9% on Thursday as rising economic expectations and inflation concerns vaulted benchmark U.S. Treasury yields to their highest since the pandemic began, helping lift the dollar. US/ USD/
* Higher yields increase the opportunity cost of holding gold, which pays no interest.
* Federal Reserve policymakers are shrugging off the surge in longer-term U.S. government bond yields as a sign of growing optimism about the economy, which could pick up steam as more people are vaccinated against COVID-19. U.S. jobless claims fell last week, suggesting the labor market was slowly regaining traction. Robust fiscal support and vaccinations could lead the United States to its strongest growth in decades, New York Fed President John Williams (NYSE:WMB) said on Thursday. China's net gold imports via Hong Kong fell in January as COVID-19-related restrictions reduced demand in the run-up to the Lunar New Year holiday. Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD fell 0.6% on Thursday. GOL/ETF
* Silver XAG= gained 0.3% to $27.49 an ounce, while palladium XPD= was steady at $2,400.43. Platinum XPT= rose 0.1% to $1,217.93 and was set to mark its worst week since end-October with a 4.4% decline.
DATA/EVENTS (GMT) 0745 France GDP QQ Final
Q4 0745 France CPI (EU Norm) Prelim YY Feb 1200 India GDP Quarterly YY
Q3 1330 US
Consumption, Adjusted MM Jan 1500 US
U Mich Sentiment Final
Feb