Gold prices were flat on Thursday, restrained by rising Treasury yields ahead of key US jobs and inflation data this week that could influence the Federal Reserve’s rate-hike roadmap for fighting inflation.
Spot gold was unchanged at $1,853.24 per ounce, as of 0303 GMT, while US gold futures eased 0.1% to $1,854.70. US weekly initial jobless claims data is due at 1230 GMT later in the day.
“Uncertainty presently is holding the gold price in a range but the trend has clearly been downward since April,” said Michael Langford, director at corporate advisory AirGuide, adding, the key issue facing gold is that it does not provide a yield in what is a rising interest rate environment.
Asian stocks fell, US bond yields rose and a soaring dollar pushed to a two-decade high against the yen, as investors worried about the outlook for more rate rises ahead of a key meeting of the European Central Bank later in the day.
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“There are few catalysts that could allow for gold to break upwards, more likely the overall downward trend should continue over the coming months and see gold settle towards $1,800/oz,” Langford added.
Investors are also awaiting monthly US consumer price data on Friday that the White House has said it expects to be “elevated”. Economists expect annual inflation to be 8.3%, according to a Reuters poll.
Bullion is often seen as an inflation hedge.
Benchmark US 10-year Treasury yields firmed, lowering the appeal of zero-yield gold.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 1,065.39 tonnes on Wednesday from 1,063.06 tonnes on Tuesday.
Spot silver rose 0.2% to $22.07 per ounce, while platinum fell 0.3% to $1,003.46.
Palladium rose 0.9% to $1,960.94, after hitting a near three-week low of $1,930.28 on Wednesday.
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