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PRECIOUS-Gold flat as U.S. yields negate firmer dollar

Published 11/05/2021, 11:52 am
Updated 11/05/2021, 11:54 am
© Reuters.
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May 11 (Reuters) - Gold prices were steady on Tuesday as a retreat in U.S. Treasury yields countered a slight rebound in the dollar, while investors awaited key data on inflation due later this week.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,836.26 per ounce by 0134 GMT, after hitting its highest since Feb. 11 at $1,842.91 on Friday.

* U.S. gold futures GCv1 were down 0.1% at $1,836.40 per ounce.

* The dollar index .DXY was up 0.1%, making gold more expensive for other currency holders. USD/

* The U.S. currency slipped to a more than two-month low in the previous session after U.S. non-farm payrolls data on Friday showed jobs growth unexpectedly slowed in April. Benchmark U.S. 10-year Treasury yields US10YT=RR were pinned below 1.6%. Lower bond yields reduce the opportunity cost of holding non-yielding gold. US/

* Bank of Japan policymakers warned of uncertainties over the country's economic recovery as pandemic curbs hurt service consumption, a summary of their opinions voiced at an April policy meeting showed on Tuesday. Market participants awaited the release of U.S. consumer price data due on Wednesday to gauge inflationary pressure and the Federal reserve's policy stance.

* Fed officials would like to see higher inflation, more wage growth and several months of strong employment gains averaging 1 million jobs added before they would consider adjusting monetary policy, Chicago Fed Bank President Charles Evans said on Monday. U.S. President Joe Biden on Monday urged U.S. companies to help workers gain access to vaccines and to raise their pay while touting an infusion of $350 billion in federal aid to state and local governments. Palladium XPD= fell 0.2% to $2,953.59 per ounce.

* Silver XAG= was little changed at $27.31 per ounce, while platinum XPT= was down 0.4% at $1,242.17.

DATA/EVENTS (GMT) 0900 Germany ZEW Economic Sentiment May 0900 Germany ZEW Current Conditions May 1400 US

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