Gold steady as investors eye U.S. data for economic cues

Gold prices held steady around the key $2,000-per-ounce mark on Wednesday as investors maintained a cautious stance and sought more clarity on the Federal Reserve’s rate-hike trajectory from upcoming U.S. economic data.

FUNDAMENTALS

* Spot gold held its ground at $1,999.09 per ounce by 0042 GMT. U.S. gold futures rose 0.3% to $2,010.20.

* The dollar index eased 0.1%, making gold more attractive for buyers holding other currencies.

* Data on Tuesday showed U.S. consumer confidence dropped to a nine-month low in April as worries about the future mounted, further heightening the risk that the economy could fall into recession this year.

* Sales of new U.S. single-family homes jumped to a one-year high in March, likely as a retreat in mortgage rates boosted demand.

* The U.S. central bank’s rate-setting Federal Open Market Committee will meet on May 2-3. * Although gold is considered a hedge against inflation and economic uncertainty, higher interest rates dim the non-yielding asset’s appeal.

* Benchmark 10-year Treasury yields fell by their largest amount since March on Tuesday, while short-term yields climbed as investors balanced rising concerns about the regional banking sector and the possibility of an imminent recession with worries about the U.S. debt ceiling.

* First Republic Bank faces dwindling and tough options to turn around its business with the creation of a ‘bad bank’ or asset sales possibilities, a source familiar with the matter said, after the lender showed the extent of deposit flight during last month’s banking crisis.

* Spot silver ticked 0.1% higher to $25.06 per ounce, platinum rose 0.7% to $1,094.12, and palladium climbed 1% to $1,498.95. DATA/EVENTS (GMT) 0130 Australia CPI QQ, YY Q1 1000 France Unemp Class-A SA March 1230 US Durable Goods March

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Sherry Jacob-Phillips)