March 31 (Reuters) - Gold prices inched lower on Wednesday
as data showing a faster-than-expected growth in China's factory
activity weighed on the metal's safe-haven appeal, while a surge
in U.S. Treasury yields added further pressure.
FUNDAMENTALS
* Spot gold XAU= was down 0.1% to $1,683.56 per ounce by
0129 GMT. U.S. gold futures GCv1 were flat at $1,685.10 per
ounce.
* China's factory activity expanded at a
faster-than-expected pace in March, official data showed, as
factories that had closed for the Lunar New Year holiday resumed
production to meet improving demand. * The U.S. 10-year Treasury yield US10YT=RR rose as far as
1.776% on Tuesday, its highest since Jan. 22. US/
* Higher returns on bonds increase the opportunity cost of
holding non-yielding bullion.
* U.S. consumer confidence surged in March to its highest
level since the start of the COVID-19 pandemic, supporting views
that economic growth will accelerate in the coming
months. * Federal Reserve policymakers are optimistic about the U.S.
economic outlook as more Americans are vaccinated and government
aid gets to households and businesses, and they are not going to
stand in its way. * The International Monetary Fund will raise its forecast
for global economic growth in 2021 and 2022 after last year's
3.5% contraction, IMF Managing Director Kristalina Georgieva
said on Tuesday. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.1% to 1,037.50
tonnes on Monday from 1,036.62 tonnes on Friday. GOL/ETF
* Silver XAG= was steady at $24.01, while platinum XPT=
rose 0.5% to $1,160.05 and palladium XPD= was up 0.7% at
$2,607.04.
DATA/EVENTS (GMT)
0600 UK GDP QQ, YY Q4
0600 UK Nationwide house price MM, YY March
0755 Germany Unemployment Chg, Rate SA March
0900 EU HICP Flash YY March
0900 EU HICP-X F&E Flash YY March