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PRECIOUS-Gold slips from 1-week peak as rising U.S. bond yields weigh

Published 11/03/2021, 02:05
Updated 11/03/2021, 02:06
© Reuters.
XAU/USD
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XAG/USD
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GC
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SI
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US10YT=X
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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

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