Gold prices rise on weaker Treasury yields, easing dollar

BENGALURU (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. [US/]

* 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.

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