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Gold flat, set for second weekly fall on bigger rate-hike fears

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Gold prices were steady on Friday,

headed for their second straight weekly decline, with worries

over major central banks potentially implementing big interest

rate hikes to target runaway inflation weighing on appetite for



* Spot gold was flat at $1,823.20 per ounce by 0113

GMT, after hitting a one-week low of $1,820.99 earlier in the

session. U.S. gold futures fell 0.3% to $1,823.80.

* Gold prices have dropped about 0.9% this week.

* The U.S. Federal Reserve’s commitment to reining in

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40-year-high inflation is “unconditional,” its chair Jerome

Powell told lawmakers on Thursday, even as he acknowledged that

sharply higher interest rates may push up unemployment.

* Stocks in global markets rose on Thursday, as U.S.

Treasury yields fell to two-week lows, while copper was at

16-month lows as investors worried about a possible global

economic slowdown.

* Yields on the benchmark U.S. 10-year Treasury note,

however, firmed on Friday, pressuring demand for gold.

* Higher interest rates and bond yields raise the

opportunity cost of holding bullion, which yields no interest.

* The dollar steadied after an uptick in the previous

session, making greenback-priced gold less attractive for buyers

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holding other currencies.

* SPDR Gold Trust , the world’s largest gold-backed

exchange-traded fund, said its holdings fell 0.81% to 1,063.07

tonnes on Thursday from 1,071.77 tonnes a day earlier.

* Spot silver dipped 0.1% to $20.92 per ounce, and

platinum rose 0.6% to $912.00, but both were set for

weekly losses.

* Palladium , however, climbed 1.1% to $1,863.62, and

has gained about 3% this week.


0600 UK Retail Sales MM/YY May

0800 Germany Ifo Business Climate New Jun

0800 Germany Ifo Curr Conditionss New Jun

0800 Germany Ifo Expectations Jun

1400 US U Mich Sentiment Final Jun

1400 US New Home Sales-Units May

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Rashmi Aich)


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