Feb 26 (Reuters) - Gold prices hit their lowest in a week on
Friday and headed for a second straight weekly decline as higher
U.S. Treasury yields sapped the appeal of non-yielding bullion.
FUNDAMENTALS
* Spot gold XAU= was steady at $1,770.15 per ounce by 0046
GMT, having earlier fallen to its lowest since Feb. 19 at
$1,764.90. Prices were down 0.6% for the week so far.
* U.S. gold futures GCv1 fell 0.5% to $1,767.10.
* Gold dropped 1.9% on Thursday as rising economic
expectations and inflation concerns vaulted benchmark U.S.
Treasury yields to their highest since the pandemic began,
helping lift the dollar. US/ USD/
* Higher yields increase the opportunity cost of holding
gold, which pays no interest.
* Federal Reserve policymakers are shrugging off the surge
in longer-term U.S. government bond yields as a sign of growing
optimism about the economy, which could pick up steam as more
people are vaccinated against COVID-19. * U.S. jobless claims fell last week, suggesting the labor
market was slowly regaining traction. * Robust fiscal support and vaccinations could lead the
United States to its strongest growth in decades, New York Fed
President John Williams said on Thursday. * China's net gold imports via Hong Kong fell in January as
COVID-19-related restrictions reduced demand in the run-up to
the Lunar New Year holiday. * Holdings in the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD fell 0.6% on
Thursday. GOL/ETF
* Silver XAG= gained 0.3% to $27.49 an ounce, while
palladium XPD= was steady at $2,400.43. Platinum XPT= rose
0.1% to $1,217.93 and was set to mark its worst week since
end-October with a 4.4% decline.
DATA/EVENTS (GMT)
0745 France GDP QQ Final Q4
0745 France CPI (EU Norm) Prelim YY Feb
1200 India GDP Quarterly YY Q3
1330 US Consumption, Adjusted MM Jan
1500 US U Mich Sentiment Final Feb