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PRECIOUS-Gold faces worst week in 12 as U.S. Treasury yields firm

Published 02/19/2021, 09:19 AM
Updated 02/19/2021, 09:20 AM
© Reuters.
XAU/USD
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Feb 19 (Reuters) - Gold prices fell to their lowest in
nearly three months on Friday and headed for their worst week
since end-November, as recent strength in U.S. Treasury yields
dented the non-yielding metal's appeal.

FUNDAMENTALS
* Spot gold XAU= fell 0.4% to $1,769.26 per ounce by 0100
GMT, having touched its lowest since Nov. 30 at $1,765.35
earlier in the session. Prices have declined 3% so far this
week.
* U.S. gold futures GCv1 slipped 0.5% to $1,766.40.
* Benchmark U.S. Treasury yields edged higher, having hit a
near one-year peak earlier in the week. Higher yields increase
the opportunity cost of holding bullion, which pays no interest.
* The dollar .DXY was also set to mark a weekly gain,
making gold expensive for holders of other currencies.
* U.S. jobless claims unexpectedly increased last week,
raising the possibility of a second straight month of tepid job
growth despite declining new COVID-19 infections. * Switzerland's monthly gold exports to India in January
reached their highest since May 2019, though exports to China
and Hong Kong remained at rock bottom, customs data showed on
Thursday. * Silver XAG= eased 0.6% to $26.86 an ounce, after falling
over 1.8% so far this week, its worst since mid-January.
* Platinum XPT= slipped 0.7% to $1,266.09 and was on
course to mark its third straight weekly gain, while palladium
XPD= shed 0.3% to $2,345.02.

DATA/EVENTS (GMT)
0700 UK Retail Sales MM, YY Jan
0700 UK Retail Sales Ex-Fuel MM Jan
0745 France CPI (EU Norm) Final MM, YY Jan
0815 France Markit Mfg, Serv, Comp Flash PMIs Feb
0830 Germany Markit Mfg, Serv, Comp Flash PMIs Feb
0900 EU Markit Mfg, Serv, Comp Flash PMIs Feb
0930 UK Flash Mfg, Serv, Comp PMIs Feb
1445 US Markit Mfg, Serv, Comp Flash PMIs Feb
1500 US Existing Home Sales Jan

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