Gold prices dip as uptick in Treasury yields, dollar weighs

April 21: Gold prices dipped on Thursday, tracking a rebound in U.S. Treasury yields and the dollar, which continued to weigh on demand for safe-haven bullion.

FUNDAMENTALS


* Spot gold was down 0.2% at $1,953.21 per ounce, as of 0039 GMT. U.S. gold futures were nearly flat at $1,956.20.

* U.S. Treasury yields firmed after they fell from three-year highs on Wednesday as dip buyers emerged and the U.S. Treasury Department saw strong demand for a sale of 20-year bonds.

* Yields have marched higher on expectations that the U.S. Federal Reserve will aggressively hike interest rates as inflation accelerates at its fastest pace in 40 years.

* Gold is highly sensitive to rising U.S. interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion.

* The dollar also strengthened after easing in the previous session, making the greenback-priced gold less attractive for other currency holders.

* In the previous session, gold prices recovered after a falling to a near two-week low as worries over the economic fallout from the Ukraine crisis buoyed demand for the safe-haven asset.

* Russian forces said they will seize the Mariupol steel plant that is the last main stronghold of resistance in the besieged city on Thursday after Ukraine proposed talks on evacuating troops and civilians there.

* Spot silver dipped 0.4% to $25.08 per ounce, platinum eased 0.1% to $986.42, and palladium dropped 0.3% to $2,444.43.

DATA/EVENTS (GMT)


0645 France Business Climate Mfg April

0900 EU HICP Final MM, YY March

1230 US Initial Jobless Clm Weekly

1230 US Philly Fed Business Indx April

1400 EU Consumer Confid. Flash April