Precious: Gold set for worst week in seven on dollar, yields strength

Triumph Gold

11/08/2023 11:51

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      Gold down 1.2% so far this week
    

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      Silver, platinum face fourth consecutive weekly fall
    

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      Palladium eyes best week since mid-June
    

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      Dollar, yields set for fourth weekly rise
    

  
 (Rewrites throughout, updates graphic, prices as of 1037 GMT)
    By Deep Kaushik Vakil
       Aug 11 (Reuters) - Gold prices on Friday were on track
for their worst week in seven, hurt by an overall stronger
dollar and elevated bond yields as investors digested the latest
U.S. inflation numbers and awaited for more economic data later
in the day.
    Spot gold  XAU=  rose 0.3% to $1,917.73 per ounce by 1037
GMT, after touching its lowest level since July 7 earlier. U.S.
gold futures  GCcv1  edged up 0.1% to $1,950.20.
    Bullion has slid about 1.2% so far in the week as the U.S.
dollar index and benchmark 10-year Treasury bond yields were on
track for their fourth consecutive weekly gain.  USD/   US/    
    
    "Investors have been coming in at these low-1900s levels and
they've been buyers, but equally, when gold has strengthened,
they've been sellers. That's helped to cap that range," said
Philip Newman, managing director of Metals Focus.
    Data on Thursday showed U.S. consumer prices increased
moderately in July, with the smallest annual increase in core
inflation in nearly two years, lifting hopes that the Federal
Reserve is at the end of its rate hike cycle.
    However, San Francisco Fed Bank President and CEO Mary Daly
said that more progress is needed before she would feel
comfortable the Fed has done enough to rein in inflation.
    Focus now shifts to U.S. producer prices and consumer
sentiment data due later in the day.
    "Investors are very focused on the expectation element of
interest rates, as opposed to where they are actually, because
of the Fed's consistent messaging that it's not about to lower
rates and any rate drop has been pushed out into 2024," Newman
added. 
    Interest rate increases tend to lift bond yields and also
raise the opportunity cost of holding non-yielding bullion.
    Spot silver  XAG=  rose 0.1% to $22.71 an ounce and platinum
 XPT=  added 0.8% to $914.12. Still, both were on track for
their fourth straight weekly loss.
    Palladium  XPD=  was up 2% to $1,312.52, eyeing its best
week since mid-June.
    

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Spot gold price in USD per oz    https://tmsnrt.rs/441AKgN
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 (Reporting by Deep Vakil in Bengaluru; Editing by Sharon
Singleton)
 ((DeepKaushik.Vakil@thomsonreuters.com;))