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PRECIOUS-Gold eases as firmer U.S. Treasury yields weigh

Published 02/25/2021, 09:15 AM
Updated 02/25/2021, 09:20 AM
© Reuters.
XAU/USD
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Feb 25 (Reuters) - Gold prices edged lower on Thursday as
higher U.S. Treasury yields dented the metal's appeal, although
losses were limited by a weaker dollar and Federal Reserve
Chairman Jerome Powell's dovish comments.

FUNDAMENTALS
* Spot gold XAU= fell 0.3% to $1,798.71 per ounce by 0059
GMT. U.S. gold futures GCv1 gained 0.2% to $1,801.20.
* Powell, testifying before the House of Representatives
Financial Services Committee, continued adding weight to the
U.S. central bank's promise to get the economy back to full
employment, and to not worry about inflation unless prices begin
rising in a persistent and troubling way. * Benchmark U.S. Treasury yields hovered near a one-year
peak hit in the previous session. Higher yields increase the
opportunity cost of holding non-yielding bullion. US/
* The dollar languished near three-year lows versus riskier
currencies. USD/
* Central bankers worldwide have been unequivocal that there
are no plans to cut back on money-printing any time soon, or
raise interest rates, but markets do not seem to be buying
it. * The first big real-world study of the Pfizer/BioNTech
vaccine to be independently reviewed shows the shot is highly
effective at preventing COVID-19, in a potentially landmark
moment for countries desperate to end lockdowns and reopen
economies. * Sales of new U.S. single-family homes increased more than
expected in January, boosted by historically low mortgage rates
and an acute shortage of previously owned houses on the
market. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.4% to 1,106.36
tonnes on Wednesday from 1,110.44 tonnes on Tuesday. GOL/ETF
* Silver XAG= slipped 0.7% to $27.79 an ounce. Platinum
XPT= fell 1.1% to $1,254, while palladium XPD= eased 0.1% to
$2,433.33.

DATA/EVENTS (GMT)
1000 EU Consumer Confid. Final Feb
1330 US Durable Goods Jan
1330 US GDP 2nd Estimate Q4
1330 US Initial Jobless Clm Weekly

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