* Investors favour other assets to hedge inflation - analyst
* U.S. Fed officials prepared to keep monetary policy easy
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa
(Updates prices)
By K. Sathya Narayanan
Feb 18 (Reuters) - Gold lingered near 11-week lows in choppy
trading on Thursday as investor optimism for a global economic
recovery raised U.S. Treasury yields and made the precious metal
less attractive.
Spot gold XAU= inched 0.1% lower to $1,774.21 per ounce at
1:45 p.m. EST (1845 GMT), near its lowest since Nov. 30 at
$1,767.20, hit earlier.
U.S. gold futures GCv1 settled up 0.1% at $1,775.
Recent U.S. data, including manufacturing numbers from the
New York Federal Reserve and separate economic readings from the
Philadelphia Fed, were very strong and showed "things are
starting to come back from the coronavirus slump," said Bob
Haberkorn, senior market strategist at RJO Futures.
But some bargain hunting, given gold's dip below $1,800 and
the lower dollar, did prompt an initial bounce in gold from
recent lows, Haberkorn said. USD/
Also providing a floor to bullion, the U.S. Federal Reserve
on Wednesday reiterated its pledge to keep interest rates near
zero until inflation and employment pick up. Gold's reaction to an unexpected increase in weekly jobless
claims on Thursday was also relatively muted, with U.S. Treasury
yields rising amid signs of an economic upswing. US/
Higher yields have eroded gold's appeal as an inflation
hedge of late, since they increase the opportunity cost of
holding the non-yielding bullion.
Gold is having a tough time trying to win over investors as
an inflation hedge, with other assets favoured instead, said
FXTM market analyst Han Tan.
On the technical front, a dip in gold's 50-day moving
average below the 200-day moving average could lead to more
selling, analysts said.
Auto-catalyst metal platinum XPT= gained 1.1% to $1,266.71
per ounce.
"As long as data such as auto sales and production continues
to be positive, that will help the message that platinum should
be one of the winners from the industrial cycle strengthening,"
said independent analyst Robin Bhar.
Elsewhere, palladium XPD= fell 0.7% to $2,355.55 and
silver XAG= lost 1.2% to $27.01.
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