Gold set for monthly drop as recent gains in US yields, dollar weigh
Gold prices firmed on Thursday as a fresh set of soft U.S. economic data added to expectations that the Federal Reserve will pause rake hikes this year, although a surge in Treasury yields and dollar kept bullion on track for a monthly loss.
FUNDAMENTALS
* Spot gold was up 0.2% at $1,946.17 per ounce by 0114 GMT, trading close to a one-month high hit on Wednesday.
U.S. gold futures steadied at $1,973.10.
* Bullion is on track for a nearly 1% monthly decline as the U.S.
dollar eyes its first monthly rise in three and U.S. Treasury yields see their fourth consecutive monthly climb having reached 2007 levels last week.
* The U.S.
economy grew at a slightly less brisk pace than initially thought in the second quarter. Investors are now awaiting the PCE inflation data later in the day, and the non-farm payrolls report on Friday.
* The Fed can end its interest rate hiking cycle if the labor market and economic growth continue to slow at the current gradual pace, the former president of the Boston Fed said on Wednesday.
* Japan's seasonally adjusted factory output fell more than expected in July from the previous month.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings edged 0.1% higher to 890.10 tons on Wednesday.
* Elsewhere, spot silver was steady at $24.66 per ounce, having climbed to a more-than-one-month high on Wednesday.
* Platinum added 0.3% to $977.02 as it heads for its second consecutive monthly gain.
