March 11 (Reuters) - Gold prices inched down after hitting a more than one-week peak on Thursday, as elevated U.S. Treasury yields continued to remain a headwind for the precious metal.
FUNDAMENTALS
* Spot gold XAU= was down 0.1% to $1,725.17 per ounce by 0043 GMT, after hitting its highest since March 3 at $1,727.65 earlier in the session. U.S. gold futures GCv1 rose 0.1% to $1,724.20.
* Benchmark U.S. Treasury yields US10YT=RR edged higher, increasing the opportunity cost of holding the non-interest yielding bullion. US/
* U.S. consumer prices increased solidly in February, with households paying more for gasoline, but underlying inflation remained tepid amid weak demand for services like airline travel and hotel accommodation. The House of Representatives gave final approval on Wednesday to one of the largest economic stimulus measures in U.S. history, a sweeping $1.9 trillion COVID-19 relief bill that gives President Joe Biden his first major victory in office. The European Central Bank is likely to signal faster money printing on Thursday to keep a lid on borrowing costs but it will stop short of adding firepower to its already aggressive pandemic-fighting package. Rising Treasury yields, a dollar rebound and commodity prices at multi-year highs may be starting to feed into a tightening of global financial conditions, testing the resolve of central bankers to reverse the moves by providing additional support. Silver XAG= eased 0.2% to $26.10 an ounce. Palladium XPD= was down 0.3% to $2,299.85. Platinum XPT= fell 0.8% to $1,192.78.
DATA/EVENTS (GMT) 1245 EU ECB Refinancing Rate March 1245 EU ECB Deposit Rate
March 1330 US Initial Jobless Clm Weekly 1700 US Federal Reserve issues quarterly financial accounts of the United States