PRECIOUS-Gold eases as dollar firms ahead of U.S. data, ECB meeting

  • 6/10/2021
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June 10 (Reuters) - Gold prices were subdued on Thursday, weighed down by a firmer dollar, as investors sat on the sidelines waiting for clearer signals on inflation levels and economic growth ahead of U.S. data and the European Central Bank meeting later in the day. FUNDAMENTALS * Spot gold was down 0.2% at $1,885.51 per ounce, as of 0058 GMT. * U.S. gold futures fell 0.4% to $1,888.80 per ounce. * The dollar index edged up slightly to trade near 90.137 against its rivals, making gold less appealing for other currency holders. * Meanwhile, the benchmark 10-year Treasury yields slipped below 1.50% for the first time since May 7, reducing the opportunity cost of holding non-interest bearing bullion. * The ECB policy decision is due at 1145 GMT, followed by U.S. consumer price index report later in the day that is expected to provide further clarity on policymakers’ view on a rise in prices and the future of economic support measures. * The ECB is all but certain to maintain a generous flow of stimulus when policymakers meet on Thursday, fearing that higher borrowing costs could smother a still nascent recovery. * Haunted by memories of past U.S. interest rate hikes, the world’s central banks are laying the groundwork for a transition to life with less global stimulus, with many countries already signalling moves to the exit. * Japan’s wholesale prices rose 4.9% in May from a year earlier to mark the biggest increase in 13 years, data showed on Thursday, indicating that higher commodities costs could hit companies slowly emerging from the COVID-19 pandemic’s pain. * SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6% to 1,043.16 tonnes on Wednesday from 1,037.33 tonnes on Tuesday. * Silver dipped 0.1% to $27.73 per ounce, palladium was steady at $2,777.69, while platinum edged 0.2% lower to $1,147.56. DATA/EVENTS (GMT) 1145 EU ECB Refinancing Rate June 1145 EU ECB Deposit Rate June 1230 US CPI MM, SA May 1230 US Initial Jobless Clm Weekly 1600 US Federal Reserve issues quarterly financial accounts of the United States (Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips) Our Standards: The Thomson Reuters Trust Principles.

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