Gold flat as dollar and yields firm up ahead of US inflation data

An uptick in the dollar and US Treasury yields pressured bullion, while investors awaited crucial US inflation data later on Friday

(Reuters) - Gold prices were flat on Friday, as an uptick in the dollar and U.S. Treasury yields pressured bullion, while investors awaited crucial U.S. inflation data later in the day.

FUNDAMENTALS

* Spot gold was mostly unchanged at $1,896.71 per ounce by 0054 GMT. Bullion has risen 0.8% so far this week and was on track for its fourth straight weekly gain.

* U.S. gold futures edged 0.1% higher to $1,899.50 per ounce.

* The dollar index was up 0.1% against rivals, making gold more expensive for other currency holders. [USD/]

* The U.S. 10-year Treasury yield rose to 1.617%, increasing the opportunity cost of holding non-interest bearing gold. [US/]

* Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped more than expected last week as layoffs subsided.

* A separate report from the Commerce Department confirmed economic growth accelerated at a 6.4% annualised rate last quarter.

* Federal Reserve Bank of Dallas President Robert Kaplan said the labour market was tighter than levels of employment suggest.

* Investors now await the monthly U.S. personal consumption report due later in the day to gauge inflationary pressure.

* Fed officials have recently downplayed rising price pressures and affirmed their support to keep monetary policy accommodative for some time.

* Japan's unemployment rate crept up and job availability slid in April, data showed, underscoring the pain that the country's prolonged battle with COVID-19 is inflicting on the economy.

* Palladium was steady at $2,806.21 per ounce, silver eased 0.1% to $27.84 and platinum rose 0.1% to $1,180.81.

DATA/EVENTS (GMT)

0645 France GDP QQ Final Q1

0645 France CPI (EU Norm) Prelim YY May

0900 EU Consumer Confid. Final May

1230 US Consumption, Adjusted MM April

1400 US U Mich Sentiment Final May

 

(Reporting by Brijesh Patel in Bengaluru; editing by Rashmi Aich)