Off The Wire
Gold prices flat as firmer U.S yields hurt appeal
Jan 18 (Reuters) - Gold prices were flat on Tuesday as a weaker dollar partially offset pressure from elevated U.S. Treasury yields, which dim the appeal of a non-yielding bullion.
Spot gold held its ground at $1,818.87 per ounce, as of 0022 GMT. U.S. gold futures edged up 0.1% to $1,818.50.
Treasury yields rose along the curve on Tuesday, lifting
the short end to new pandemic highs on rate hike expectations.
The focus is now on the U.S. Federal Reserve's Jan. 25-26
meeting after policymakers signalled that they would start
raising interest rates in March to tame inflation.
Gold is considered an inflationary hedge, but the metal is
highly sensitive to rising U.S. interest rates, which increase
the opportunity cost of holding non-interest bearing bullion.
The U.S. dollar slightly weakened, and was close
its lowest level in two months, making greenback-priced gold
more attractive for overseas buyers.
The Bank of Japan is expected to upgrade its inflation
forecast on Tuesday and acknowledge budding signs of change in
the country's deflationary mindset, as stubbornly high global
commodity costs prompt more firms to raise prices.
Australian consumer confidence took a battering last week
as an explosion in coronavirus cases triggered self-imposed
lockdowns, squashing spending and blowing holes in supply
The global job market will take longer to recover than previously thought, with unemployment set to remain above pre-COVID-19 levels until at least 2023 due to uncertainty about the pandemic's course and duration, the International Labour Organization said in a report on Monday.
Spot silver was up 0.1% at $23.02 an ounce, platinum rose 0.3% to $974.43, and palladium was flat at $1,874.66.
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Sherry Jacob-Phillips) 3590 (If within U.S. call 651-848-5832 );))