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PRECIOUS-Gold sinks to 9-month low as Fed remarks boost dollar, bond yields

Published 05/03/2021, 12:26 pm
Updated 05/03/2021, 12:30 pm
© Reuters.
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March 5 (Reuters) - Gold slumped to a near nine-month low on Friday and headed for a third straight weekly decline after Federal Reserve Chair Jerome Powell disappointed investors with his view on rising yields that pushed up the dollar and bond yields.

FUNDAMENTALS

* Spot gold XAU= eased 0.2% to $1,693.79 per ounce by 0055 GMT, having earlier dropped to its lowest since June 8 at $1,688.96. It was down 2.3% for the week so far.

* U.S. gold futures GCv1 dropped 0.6% to $1,691.20.

* Powell on Thursday repeated his pledge to keep credit loose and said although the rise in yields was "notable", he did not consider it a "disorderly" move. The U.S. 10-year yield topped 1.5%, while the dollar surged to three-month highs. Higher yields increase the opportunity cost of holding bullion, which pays no interest. USD/ US/

* U.S. jobless claims rose last week after brutal winter storms in mid-February. The amount of gold held by exchange traded funds fell by 84.7 tonnes worth $4.6 billion in February, the World Gold Council (WGC) said. CME Group Inc CME.O decreased margins for COMEX 100 Gold Futures contracts by 9.1%. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD fell 0.4% on Thursday. GOL/ETF

* Silver XAG= rose 0.2% to $25.35 an ounce, but was down 5% for the week so far, its worst since late-November.

* Palladium XPD= climbed 0.2% to $2,343.55. Platinum XPT= shed 1.2% to $1,113.02.

DATA/EVENTS (GMT) 0700 Germany Industrial Orders MM

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Jan 2000 US

Federal Reserve issues Consumer Credit for January

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