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PRECIOUS-Gold faces worst week in 12 as U.S. Treasury yields firm

Published 19/02/2021, 12:19 pm
© Reuters.
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Feb 19 (Reuters) - Gold prices fell to their lowest in nearly three months on Friday and headed for their worst week since end-November, as recent strength in U.S. Treasury yields dented the non-yielding metal's appeal.

FUNDAMENTALS

* Spot gold XAU= fell 0.4% to $1,769.26 per ounce by 0100 GMT, having touched its lowest since Nov. 30 at $1,765.35 earlier in the session. Prices have declined 3% so far this week.

* U.S. gold futures GCv1 slipped 0.5% to $1,766.40.

* Benchmark U.S. Treasury yields edged higher, having hit a near one-year peak earlier in the week. Higher yields increase the opportunity cost of holding bullion, which pays no interest.

* The dollar .DXY was also set to mark a weekly gain, making gold expensive for holders of other currencies.

* U.S. jobless claims unexpectedly increased last week, raising the possibility of a second straight month of tepid job growth despite declining new COVID-19 infections. Switzerland's monthly gold exports to India in January reached their highest since May 2019, though exports to China and Hong Kong remained at rock bottom, customs data showed on Thursday. Silver XAG= eased 0.6% to $26.86 an ounce, after falling over 1.8% so far this week, its worst since mid-January.

* Platinum XPT= slipped 0.7% to $1,266.09 and was on course to mark its third straight weekly gain, while palladium XPD= shed 0.3% to $2,345.02. DATA/EVENTS (GMT) 0700 UK

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