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Metals Stocks: Gold prices see muted action Friday as strong dollar, rising yields limit moves

0

Gold futures on Friday were trading near unchanged as global stocks, the U.S. dollar and bond yields were all rising, putting some pressure on bullion. A reading of U.S. inflation did little to change gold’s early trading moves.

Gold for April delivery 
GC00,
-0.09%

GCJ21,
-0.09%

shed $2, or 0.1%, at $1,722.90 an ounce on Comex, following a 0.5% slide on Thursday. The precious metal has been trading on either side of unchanged.

“Gold prices are slightly lower in early U.S. trading Friday and seeing a bit of selling pressure amid generally positive trader and investor attitudes in the marketplace,” wrote Jim Wyckoff, senior analyst at Kitco.com.

The 10-year Treasury note
TMUBMUSD10Y,
1.672%

was yielding 1.67%, up after trading near an intraweek low of around 1.59% on Thursday, but down from 1.729% put in last Friday. Rising yields can detract from appetite for non-yielding precious metals.

A gauge of the U.S. dollar was up 0.3% on the day and week, as measured by the ICE U.S. Dollar Index
DXY,
+0.30%
,
a measure of the buck against a half dozen currencies. A stronger buck can make commodities priced in the currency comparatively more expensive to overseas buyers.

Gains in stocks, with the Dow Jones Industrial Average
DJIA,
+0.62%

and the S&P 500
SPX,
+0.52%

set to rise on Friday, were weighing on gold appetite.

May silver
SIK21,
+0.17%

SI00,
+0.17%
,
meanwhile, was trading 10 cents, or 0.4%, higher at around $25.15 an ounce, after a decline of 0.7% in the previous session.

A reading on U.S. personal income and spending showed that income declined 7.1% in February, compared with an expected drop of 7%, according to consensus estimates of economists surveyed by Dow Jones. Consumer spending fell 1%, compared with an expected drop of 0.8% and the Federal Reserve’s preferred inflation gauge, personal-consumption expenditures, or PCE, rose 0.2% in February, with core inflation up 0.1%, excluding volatile energy and food, matching estimates.

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