Gold eases; set for third weekly gain on weak dollar, inflation jitters


Gold edged lower on Friday, as optimism around a swift economic recovery lifted appeal for riskier assets, although a weaker dollar and growing inflationary pressure limited losses and kept bullion on track for a third straight weekly rise.


* Spot gold was down 0.2% at $ 1,872.21 per ounce by 0126 GMT, but it has risen 1.6% this week.

* U.S. gold futures fell 0.4% to $ 1,873.70 per ounce.

* The dollar was pinned near milestone lows against its rivals and was headed for a weekly loss. A weaker greenback makes gold more appealing for other currency holders. [USD/]

* Benchmark 10-year Treasury yields fell to 1.6340% overnight. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.

* Risk sentiment in wider financial markets remained upbeat after strong U.S. jobs data lifted hopes around a quick economic recovery. [MKTS/GLOB]

* Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week.

* Japan’s core consumer prices slid for the ninth straight month in April, as a record slump in cellphone fees offset rising energy prices.

* Britain’s economy will grow much faster than expected this year as a fast-moving coronavirus vaccine programme allows businesses to re-open and lifts confidence, a Reuters poll found.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6% to 1,037.09 tonnes on Thursday from 1,031.27 tonnes on Wednesday. [GOL/ETF]

* Palladium gained 0.5% to $ 2,865.73 per ounce, silver eased 0.1% to $ 27.72, while platinum edged 0.4% higher to $ 1,200.57.


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