Gold flat as dollar, yields firm ahead of US inflation data

[BENGALURU] Gold prices were flat on Friday, as an uptick in the dollar and US Treasury yields pressured bullion, while investors awaited crucial US inflation data later in the day.

Spot gold was mostly unchanged at US$1,896.71 per ounce by 12.54am GMT. Bullion has risen 0.8 per cent so far this week and was on track for its fourth straight weekly gain.

US gold futures edged 0.1 per cent higher to US$1,899.50 per ounce.

The dollar index was up 0.1 per cent against rivals, making gold more expensive for other currency holders.

The US 10-year Treasury yield rose to 1.617 per cent, increasing the opportunity cost of holding non-interest bearing gold.

Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped more than expected last week as layoffs subsided.

A separate report from the Commerce Department confirmed economic growth accelerated at a 6.4 per cent annualised rate last quarter.

Federal Reserve Bank of Dallas President Robert Kaplan said the labour market was tighter than levels of employment suggest.

Investors now await the monthly US personal consumption report due later in the day to gauge inflationary pressure.

Fed officials have recently downplayed rising price pressures and affirmed their support to keep monetary policy accommodative for some time.

Japan's unemployment rate crept up and job availability slid in April, data showed, underscoring the pain that the country's prolonged battle with Covid-19 is inflicting on the economy.

Palladium was steady at US$2,806.21 per ounce, silver eased 0.1 per cent to US$27.84 and platinum rose 0.1 per cent to US$1,180.81.

REUTERS