PRECIOUS-Gold holds steady on lower yields, with focus on U.S. inflation data

Reuters

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    Aug 9 (Reuters) - Gold prices were flat on Tuesday as dollar
and Treasury yields fell, while investors looked forward to U.S.
inflation data later this week that could offer more clarity on
the Federal Reserve's rate hike path.
            
    FUNDAMENTALS
    * Spot gold  XAU=  were flat at $1,786.86 per ounce, as of
0112 GMT, after rising 0.8% in the previous session.
    * U.S. gold futures  GCv1  were steady at $1,804.70.
    * The dollar index  =USD  moved further away from a one-week
peak hit post Friday's blockbuster U.S. jobs report, making gold
less expensive for other currency holders.  USD/ 
    * Benchmark U.S. 10-year Treasury yields  US10YT=RR  dipped
to 2.7554%, reducing the opportunity cost of holding
non-interest bearing gold.  US/  
    * Markets are looking ahead to U.S. inflation data for July,
which will be released on Wednesday. Analysts polled by Reuters
expect annual inflation to have eased to 8.7% in July from 9.1%
in June.
    * Fed funds futures traders are now pricing for a 64.5%
chance of another 75-basis-point rate increase at the U.S.
central bank's next policy meeting in September to combat
soaring inflation.  FEDWATCH 
    * Although gold is seen as a hedge against inflation, higher
U.S. interest rates dull non-yielding bullion's appeal.
    * U.S. consumers' expectations for where inflation will be
in a year and three years, respectively, dropped sharply in
July, a New York Federal Reserve survey showed on Monday,
indicating U.S. central bankers are winning the fight.
 urn:newsml:reuters.com:*:nW1N2ZA03W
    * China announced new military drills around Taiwan on
Monday, eliciting concern from U.S. President Joe Biden, a day
after the scheduled end of Beijing's largest exercises to
protest last week's visit to the island by U.S. House Speaker
Nancy Pelosi.  urn:newsml:reuters.com:*:nW1N2YS047  urn:newsml:reuters.com:*:nL1N2ZK06O
    * Spot silver  XAG=  eased 0.1% to $20.63 per ounce,
platinum  XPT=  fell 0.1% to $938.99, and palladium  XPD=  was
unchanged at $2,231.82.

 (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi
Aich)
 ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848
5832, Outside U.S. +91 8067493865; Reuters Messaging:
Brijesh.Patel1.thomsonreuters.com@reuters.net))

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