May 10, 2018 / 1:24 AM / 7 months ago

PRECIOUS-Gold edges down on firm dollar, US bond yields

    BENGALURU, May 10 (Reuters) - Gold prices nudged lower on
Thursday as the dollar held near its 2018-peak on firm U.S. bond
yields, with investors also keeping an eye out for any further
impact from U.S. President Donald Trump's decision to pull out
of a nuclear deal with Iran.
    
    FUNDAMENTALS  
    * Spot gold        had fallen 0.1 percent to $1,311.26 per
ounce by 0053 GMT.
    * U.S. gold futures         for June delivery slipped 0.1
percent to $1,311.40 per ounce.
    * The dollar held firm on Thursday after the 10-year U.S.
bond yield rose back to the psychologically important 3 percent
mark and investors looked to U.S. consumer price data due later
to show accelerating inflation.             
    * The dollar index        was 0.1-percent higher at 93.150
after hitting a 4-1/2-month peak at 93.416 on Wednesday. 
    * Asian stocks rose on Thursday, with energy shares leading
the way as crude oil prices bolted higher after Trump's move to
exit the nuclear deal with Iran.            
    * Dismayed European allies sought on Wednesday to salvage
the deal with Iran.             
    * U.S. producer prices barely rose in April after strong
gains in the first quarter, held back by a moderation in the
cost of services such as hotel accommodation and healthcare,
which could ease fears that inflation pressures were rapidly
building up.             
    * Bank of England interest rates look set to remain on hold
on Thursday, after unexpectedly weak economic data and cautious
remarks from Governor Mark Carney dashed the chances of what
until a few weeks ago looked like a near-certain increase.
            
    * Investors are pushing back expectations for a rise in euro
zone interest rates further into 2019 against a backdrop of soft
economic data and disappointing inflation numbers, money market
pricing suggests.             
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.14 percent to
862.95 tonnes on Wednesday from 864.13 tonnes on Tuesday.
            
        
    DATA/EVENT AHEAD (GMT)
    
    0130  China        Consumer prices              Apr
    0130  China        Producer prices              Apr
    1230  U.S.         Consumer prices              Apr
    1230  U.S.         Weekly jobless claims

 (Reporting by Apeksha Nair in Bengaluru
Editing by Joseph Radford)
  
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