May 12 (Reuters) - Gold prices fell on Wednesday, as a rise
in U.S. Treasury yields and a firmer dollar dented the metal's
safe-haven appeal, while investors awaited U.S. consumer price
index data due later in the day.
FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,832.73 per ounce by
0109 GMT.
* U.S. gold futures GCv1 eased 0.1% to $1,834.30.
* The dollar index .DXY was up 0.1%, making gold more
expensive for other currency holders. USD/
* The U.S. currency slipped to a more than two-month low in
the previous session after worries about rising inflation
threatened to erode its value.
* Benchmark U.S. 10-year Treasury yields US10YT=RR hit
their highest in more than a week. Higher bond yields raise the
opportunity cost of holding non-yielding gold. US/
* Federal Reserve officials grappled on Tuesday with April's
surprisingly weak employment growth, maintaining faith in the
U.S. economic rebound but acknowledging the pace of the jobs
recovery may prove choppier than anticipated. * Market participants awaited the release of U.S. consumer
price data due 1230 GMT on Wednesday for further cues on the
Fed's stance on inflation.
* U.S. job openings surged to a record high in March,
further evidence that a shortage of workers was hampering job
growth, even as nearly 10 million Americans are looking for
employment. * Asian shares languished near one-month lows. MKTS/GLOB
* South Korea's unemployment rate fell to an eight-month low
in April, while the number of people employed rose at the
sharpest pace in nearly seven years as the economic recovery
continues. * Palladium XPD= rose 0.2% to $2,942.67 per ounce.
* Silver XAG= fell 0.6% to $27.47 per ounce, while
platinum XPT= slipped 0.5% to $1,228.68.
DATA/EVENTS (GMT)
0600 UK GDP Estimate MM, YY March
0600 UK Manufacturing Output MM March
0600 UK GDP Prelim QQ, YY Q1
1230 US CPI MM, SA April