May 13 (Reuters) - Gold edged higher on Thursday, buoyed by
hopes that the U.S. Federal reserve may not hike interest rates
anytime soon, but a jump in U.S. Treasury yields following a
bigger-than-expected rise in April's U.S. consumer prices capped
gains.
FUNDAMENTALS
* Spot gold XAU= was up 0.2% at $1,819.71 per ounce by
0116 GMT.
* U.S. gold futures GCv1 eased 0.2% to $1,819.10.
* U.S. consumer prices increased by the most in nearly 12
years in April, as booming demand amid a reopening economy
pushed against supply constraints, which could add fuel to
financial market fears of a lengthy period of higher inflation.
* The data has put investors on high alert for more signs of
inflationary pressure that could tilt the U.S. Federal Reserve
toward raising interest rates. * However, Fed Vice Chair Richard Clarida said on Wednesday
it would be "some time" before the economy is healed enough for
the central bank to consider scaling back its support.
* Benchmark U.S. 10-year Treasury yields US10YT=RR hit
their highest in more than a month. Higher bond yields increase
the opportunity cost of holding non-yielding gold. US/
* U.S. President Joe Biden said on Wednesday he sees room
for a compromise on his proposal for trillions of dollars in
infrastructure spending after meeting with Republican leaders,
but will move forward without the opposition party if necessary.
* Asian shares faced a third day of losses. MKTS/GLOB
* A measure of British house price inflation hit its highest
level in four decades in April as buyers raced to take advantage
of an extended tax break, a survey showed on Thursday.
* Palladium XPD= gained 1.7% to $2,903.68 per ounce.
* Silver XAG= rose 0.5% to $27.16 per ounce, while
platinum XPT= was up 0.4% at $1,214.10.
DATA/EVENTS (GMT)
1230 US Initial Jobless Clm Weekly