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PRECIOUS-Gold slips as dollar firms but still set for first weekly gain in three

Published 22/01/2021, 10:01 pm
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* Silver poised for best week in five, up 1.5% so far

* Platinum slips from over 4-yr high, but set for 2nd weekly gain

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)

By Asha Sistla

Jan 22 (Reuters) - Gold prices fell more than 1% on Friday as U.S. Treasury yields and the dollar held firm, although expectations of a big U.S. fiscal stimulus kept bullion on course for its first weekly gain in three.

Spot gold XAU= had dipped 1.3% to $1,845.21 per ounce by 1233 GMT, retreating from its highest since Jan. 8 hit on Thursday. U.S. gold futures GCv1 fell 0.9% to $1,849.50.

"The challenge for gold is it seems well supported around the $1,800 levels but the dollar seems to have pulled out of its lows and not convinced that its small recovery has run its course and that continues to be a drag (on gold)," said OANDA analyst Craig Erlam.

"Higher yields and U.S. dollar is driving the consolidation that we're seeing in gold."

Benchmark 10-year U.S. Treasury yields US10YT=RR held firm above 1%, helping the dollar gain. US/ USD/ the week, gold is up 0.8% as investors remain hopeful about the passage of U.S. President Joe Biden's $1.9 trillion stimulus plan. other metals, platinum XPT= dipped 3.2% to $1,090.98. The auto-catalyst metal was still set to post its second consecutive weekly gain, up 1.3%, after hitting its highest since Aug. 12, 2016 on Thursday.

"As a result, the price differential to gold narrowed for a time to $720 per troy ounce. The last time it was any lower was in February last year," said Commerzbank (DE:CBKG) analyst Carsten Fritsch in a note.

"There was no specific trigger for the price surge. The price may have been pushed up by technical buying after it exceeded its previous high at $1,130."

Silver XAG= shed 2.8% to $25.22 an ounce, but was set to register a weekly gain after falling for the last two weeks, up 1.7% so far. Palladium XPD= fell 0.3% to $2,354.61.

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