March 26 (Reuters) - Gold prices were on course for a first
weekly decline in three as elevated Treasury yields and a firm
U.S. dollar dented safe-haven bullion's appeal even as the metal
steadied on the day.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,726.96 per ounce by 0126
GMT on Friday. U.S. gold futures GCv1 were steady at $1,725.50
per ounce. The metal hit a one-week low of $1,721.46 in the
previous session.
* For the week, the metal has lost over 1% as the U.S.
dollar climbed against a basket of major currencies, leaping
over a four-month high on Thursday. USD/
* U.S. Treasury yields also jumped after the Treasury
Department saw tepid interest for an auction of seven-year
notes. US/
* Higher returns on Treasury bonds generally increase the
opportunity cost of holding non-yielding bullion, while a strong
dollar makes it expensive for non-U.S. buyers.
* Another bond market sell-off is likely in the next three
months following the recent rout in financial markets, according
to analysts polled by Reuters. * Countries in Europe are re-enforcing COVID-19 restrictions
as Germany, Europe's largest economy, saw the highest surge in
coronavirus cases since January, further raising doubts about
the pace of economic recovery. * Gold is often considered as a safe-haven investment at
times of political andd economic uncertainties.
* Asian markets are set to open higher on Friday after U.S.
equities rose as investors weighed the outlook for economic
growth and inflation and welcomed progress on vaccination
rollouts. MKTS/GLOB
* The number of Americans filing new claims for unemployment
benefits dropped to a one-year low last week. * Silver XAG= rose 0.1% to $25.05, holding above an over
two-month low of $24.39 per ounce hit on Thursday.
* Palladium XPD= rose 0.2% to $2,614.51 and platinum
XPT= fell 0.1% to $1,146.11.
DATA/EVENTS (GMT)
0700 UK Retail Sales MM, YY, Ex-Fuel MM Feb
0900 Germany Ifo Business Climate New March
0900 Germany Ifo Current Conditions New March
0900 Germany Ifo Expectations New March
1330 US Consumption, Adjusted Feb
1400 US U Mich Sentiment Final March