Gold at three-week lows as greenback, bond yields keep elevated By Reuters

(Reuters) – Gold costs lingered at a three-week trough on Thursday, pressured by rising U.S. greenback and Treasury yields amid worries that the Federal Reserve will stick with sharp price hikes.

FUNDAMENTALS

* inched down 0.1% to $1,627.04 per ounce, as of 0049 GMT. Costs earlier hit their lowest degree since Sept. 28 at $1,624.98.

* U.S. have been down 0.1% at $1,632.60.

* The held regular, having risen 0.8% on Wednesday, whereas the benchmark 10-year Treasury yields hit a peak since mid-2008. [USD/]

* U.S. financial exercise expanded modestly in latest weeks, though it was flat in some areas and declined in a few others, the Fed stated on Wednesday in a report that confirmed corporations rising extra pessimistic concerning the outlook.

* With newest information displaying inflation persevering with to run at greater than 3 times the central financial institution’s 2% goal, the report could do little to mood expectations for a fourth straight 75-basis-point price hike subsequent month.

* Whereas gold is taken into account a hedge towards inflation, larger rates of interest enhance the chance value of holding the bullion, which yields nothing.

* Euro zone client inflation was marginally decrease in September than estimated earlier, information confirmed on Wednesday, however nonetheless at a report excessive, underlining market expectations of extra price rises earlier than the top of the yr.

* Holdings of SPDR Gold Belief (P:), the world’s largest gold-backed exchange-traded fund, fell 6.08 tonnes on Wednesday, their largest one-day outflow since July.

* Spot silver fell 0.4% to $18.36 per ounce, platinum dropped 0.6% to $878.52 and palladium slipped 0.6% to $1,988.78.

DATA/EVENTS (GMT)

0115 China Mortgage Prime Charge 1Y, 5Y Oct

0645 France Enterprise Local weather Mfg, Total Oct

1230 US Preliminary Jobless Clm Weekly

1230 US Philly Fed Enterprise Indx Oct

1400 US Present Dwelling Gross sales Sept