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PRECIOUS-Gold flat as robust U.S. economic data counters lower yields

Published 04/16/2021, 09:55 AM
Updated 04/16/2021, 10:00 AM
© Reuters.

© Reuters.

April 16 (Reuters) - Gold prices were steady on Friday as
robust U.S. economic data nullified support from lower Treasury
yields, although the metal looked set to post a second straight
weekly gain on inflationary concerns.

FUNDAMENTALS
* Spot gold XAU= was steady at $1,763.46 per ounce by 0113
GMT. U.S. gold futures GCv1 were down 0.2% to $1,763.80 per
ounce.
* Gold was set for its best week in five as inflationary
concerns over massive fiscal aids and ultra-low interest rates
across the globe kept the metal supported.
* U.S. Treasury yields plummeted to one-month lows on
Thursday after the U.S. government imposed a broad array of
sanctions on Russia as punishment for alleged misdeeds,
including interfering in the 2020 U.S. election. US/
* Low bond returns reduce the opportunity cost of holding
non-yielding bullion.
* Weighing on gold, data showed a better-than-expected
rebound in U.S. retail sales in March, while weekly initial
claims for state unemployment benefits dropped to the lowest
level since mid-March 2020. * China's economic recovery from a coronavirus-induced
downturn earlier last year likely accelerated rapidly in the
first quarter, driven by improved demand at home and abroad and
continued government support for smaller companies. * Holdings of the largest gold-backed exchange-traded-fund
(ETF), New York's SPDR Gold Trust GLD , fell 0.3% on Wednesday
from Tuesday. GOL/ETF
* Silver XAG= was flat at $25.85 per ounce, but up for a
second straight week.
* Palladium XPD= was steady at $2,741.84 but up about 4%
for the week. Platinum XPT= gained 0.5% to $1,198.21.

DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY March
0200 China Industrial Output YY March
0200 China Retail Sales YY March
0200 China GDP YY Q1
0900 EU HICP Final MM, YY March
1230 US Housing Starts Number March
1300 EU Finance ministers meet
1400 US U Mich Sentiment Prelim April

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