PRECIOUS-Gold flat as U.S. yields negate firmer dollar

  • 5/11/2021
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May 11 (Reuters) - Gold prices were steady on Tuesday as a retreat in U.S. Treasury yields countered a slight rebound in the dollar, while investors awaited key data on inflation due later this week. FUNDAMENTALS * Spot gold was steady at $1,836.26 per ounce by 0134 GMT, after hitting its highest since Feb. 11 at $1,842.91 on Friday. * U.S. gold futures were down 0.1% at $1,836.40 per ounce. * The dollar index was up 0.1%, making gold more expensive for other currency holders. * The U.S. currency slipped to a more than two-month low in the previous session after U.S. non-farm payrolls data on Friday showed jobs growth unexpectedly slowed in April. * Benchmark U.S. 10-year Treasury yields were pinned below 1.6%. Lower bond yields reduce the opportunity cost of holding non-yielding gold. * Bank of Japan policymakers warned of uncertainties over the country"s economic recovery as pandemic curbs hurt service consumption, a summary of their opinions voiced at an April policy meeting showed on Tuesday. * Market participants awaited the release of U.S. consumer price data due on Wednesday to gauge inflationary pressure and the Federal reserve"s policy stance. * Fed officials would like to see higher inflation, more wage growth and several months of strong employment gains averaging 1 million jobs added before they would consider adjusting monetary policy, Chicago Fed Bank President Charles Evans said on Monday. * U.S. President Joe Biden on Monday urged U.S. companies to help workers gain access to vaccines and to raise their pay while touting an infusion of $350 billion in federal aid to state and local governments. * Palladium fell 0.2% to $2,953.59 per ounce. * Silver was little changed at $27.31 per ounce, while platinum was down 0.4% at $1,242.17. DATA/EVENTS (GMT) 0900 Germany ZEW Economic Sentiment May 0900 Germany ZEW Current Conditions May 1400 US JOLTS Job Openings March (Reporting by Shreyansi Singh in Bengaluru; Editing by Subhranshu Sahu) Our Standards: The Thomson Reuters Trust Principles.

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