June 22, 2017 / 1:27 AM / 2 months ago

PRECIOUS-Gold prices rise on weaker Treasury yields, easing dollar

    BENGALURU, June 22 (Reuters) - Gold prices climbed on
Thursday as an easing U.S. dollar flattened U.S. Treasury yields
to their lowest in nearly a decade.   
    
    FUNDAMENTALS    
    * Spot gold        had risen 0.5 percent to $1,251.91 per
ounce at 0120 GMT. It rose 0.3 percent in the previous session,
its largest intra-day percentage change since June 6.
    * U.S. gold futures         for August delivery gained 0.6
percent to $1,253.10 per ounce. 
    * The U.S. Treasury yield curve flattened to almost 10-year
lows on Wednesday as investors evaluated the impact of hawkish
Federal Reserve policy on the economy even as inflation measures
are deteriorating.                   
    * The dollar slipped from a one-month peak against a basket
of currencies on Wednesday, as losses on Wall Street stocks
spurred some traders to book profits on gains tied to
expectations of possibly another U.S. interest rate increase
later this year.      
    * U.S. home resales unexpectedly rose in May to the third
highest monthly level in a decade and a chronic inventory
shortage pushed the median home price to an all-time high.
                
    * The United States pressed China to exert more economic and
diplomatic pressure on North Korea to help rein in its nuclear
and missile programmes during a round of high-level talks in
Washington on Wednesday.                 
    * SPDR Gold Trust GLD, the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.04 percent to
853.98 tonnes on Wednesday from 853.68 tonnes on Tuesday.
            
    *  The Bank of England moved closer to ending its
decade-long emergency support for Britain's economy on Wednesday
when its chief economist, Andy Haldane, said he was likely to
vote for an interest rate hike this year.             
    * Prime Minister Theresa May promised on Wednesday to listen
more closely to business concerns about Britain leaving the
European Union as she set out a Brexit-focused government
programme, pared back to reflect her weakened authority.
                   
    
    DATA AHEAD (GMT) 
     0600  France      Business climate                June 
     1230  U.S.        Weekly jobless claims   
     1300  U.S.        Monthly home price index        April 
     1400  Euro zone   Consumer confidence flash       June
     1400  U.S.        Leading index                   May 

 (Reporting by Nithin Prasad in Bengaluru; Editing by Joseph
Radford)
  

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