Gold steadies near one-month high buoyed by softer dollar, yields

Gold steadies near one-month high buoyed by softer dollar, yields

Gold prices hovered near a one-month peak on Thursday as the and longer-dated Treasury yields retreated from recent highs following hotter-than-expected U.S. inflation data.

FUNDAMENTALS

* Spot gold was little changed at $1,793.72 per ounce by 0100 GMT. Prices hit their highest level since Sept. 16 at $1,795.81 on Wednesday.

* U.S. gold futures slipped 0.1% to $1,792.20.

* Making the precious metal cheaper for holders of other currencies, the dollar index fell 0.5% overnight, retreating from a more than one-year high.

* Benchmark U.S. 10-year Treasury yields pulled back from a more than four-month high, reducing the opportunity cost of holding non-interest bearing gold.

* U.S. consumer prices increased solidly in September as Americans paid more for food, rent and a range of other goods, putting pressure on the Biden administration to urgently resolve strained supply chains, which are hampering economic growth.

* Minutes from the Federal Reserve’s September meeting showed the central banks could start reducing its crisis-era support for the U.S. economy by mid-November, but policymakers remained split over how big of a threat high inflation represents and how soon they may need to raise rates in response.

* A group of banks that partnered with the London Metal Exchange to launch gold and silver futures in 2017 is preparing to abandon the project after hoped-for volumes did not materialise, three sources with direct knowledge of the matter said.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2% to 982.72 tonnes on Wednesday from 985.05 tonnes on Tuesday.

* Spot silver rose 0.1% to $23.09 per ounce, having hit a near one-month high in the previous session.

* Platinum was flat at $1,019.68 and palladium eased 0.1% to $2,103.81, having jumped as much as 5.2% on Wednesday. DATA/EVENTS (GMT) 0130 China PPI, CPI YY Sept 1230 US Initial Jobless Clm Weekly

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