PRECIOUS-Gold slips; set for third weekly gain on inflation jitters, weak dollar


    * Gold up 1.6% so far this week     * Dollar on track for a weekly loss     * SPDR Gold Trust holdings rose 0.6% on Thursday     * Platinum set for second straight weekly decline   (Recasts, adds comments, updates prices)     By Brijesh Patel     May 21 (Reuters) - Gold fell on Friday, as optimism around a rebound in the U.S. economy lifted appeal for riskier assets, but a weaker dollar and growing inflationary pressure limited losses and kept bullion on track for a third straight weekly gain.     Spot gold        was down 0.3% at $1,871.50 per ounce by 0253 GMT, but it has risen 1.6% this week. U.S. gold futures        fell 0.6% to $1,871.     "U.S. economic data has given us strong inflation alerts this week, meaning yields and the dollar have fallen, strong supportive factors for gold," OANDA senior market analyst Jeffrey Halley said.     "Today it looks like a short-term dip, absent other factors, rather than a fully fledged turn in direction. Additionally, I believe that upward trading momentum has increased for gold as investors now believe that prices have made a structural low."     The dollar was pinned near milestone lows against its rivals and was headed for a weekly loss, while benchmark 10-year Treasury yields             fell.                  Recent data showing a rise in prices in the United States and the UK intensified concerns over inflation, lifting gold's appeal as an inflation hedge.     Indicative of sentiment, holdings of SPDR Gold Trust      , the world's largest gold-backed exchange-traded fund, rose 0.6% to 1,037.09 tonnes on Thursday.               However, risk sentiment in wider financial markets remained upbeat fuelled by hopes around a quick economic recovery, limiting demand for safe-havens'.                 Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week.                  Britain's economy will grow much faster than expected this year, as a rapidly moving coronavirus vaccine programme allows businesses to re-open and lifts confidence, a Reuters poll found.                  Palladium        fell 0.9% to $2,826.22 per ounce, silver        eased 0.3% to $27.65. Platinum        edged 0.1% higher to $1,197.51, but it was on track for its second straight weekly fall.        (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)   



Read More: PRECIOUS-Gold slips; set for third weekly gain on inflation jitters, weak dollar

2021-05-21 03:36:14

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