PRECIOUS-Gold hits 1-week low as yields rise ahead of Fed statement

4/28/2021
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* Palladium retreats from all-time high hit on Tuesday * U.S. consumer confidence jumps to 14-month peak * U.S. 10-year Treasury yields surge to near 2-week high (Updates prices) By Shreyansi Singh April 28 (Reuters) - Gold prices slipped to a one-week low on Wednesday as U.S. Treasury yields firmed up ahead of a Federal Reserve policy statement later in the day. Spot gold was down 0.6% at $1,766.44 per ounce by 0729 GMT, having fallen to its lowest since April 20 at $1,764.90 earlier in the day. U.S. gold futures eased 0.7% to $1,766.70 per ounce. "Strong U.S. consumer sentiment data ... and higher commodity prices are pushing yields up and gold prices down as a result," IG Market analyst Kyle Rodda said. Benchmark U.S. 10-year Treasury yields jumped to their highest since April 13, increasing the opportunity cost of holding bullion. U.S. consumer confidence soared to a 14-month high in April, as more businesses reopened. The dollar index rose 0.2% against its rivals, making gold more expensive for holders of other currencies. Investors now await the Fed"s statement, which is expected to provide cues on the central bank"s monetary policy outlook. The market will be "looking for signals that maybe the Fed is starting to think about tapering or when they should taper", IG Market"s Rodda said. Analysts and traders have slashed their gold price forecasts, with many believing a return to last year"s record highs is unlikely as economic recovery tarnishes the safe-haven metal"s appeal, a Reuters poll showed. Meanwhile, analysts at Goldman Sachs see gold prices at $2,000 an ounce over the next six months and said it was too early for bitcoin to compete with gold for safe-haven demand. Bitcoin , also considered a store of value, rose to a one-week high of $55,809.86 earlier in the session. Palladium fell 0.4% to $2,931.51 per ounce, after hitting an all-time high of $2,962.50 on Tuesday. Silver fell 1.2% to $25.92 per ounce. Platinum was down 0.9% at $1,217.90. (Reporting by Shreyansi Singh in Bengaluru; Editing by Subhranshu Sahu and Vinay Dwivedi)