Feb 8 (Reuters) – Gold prices ticked up on Thursday buoyed by a softer dollar and lower Treasury yields, ahead of a weekly jobless claims report that could provide fresh clues on when the U.S. Federal Reserve would start lowering interest rates.
FUNDAMENTALS
* Spot gold XAU= rose 0.2% to $2,037.80 per ounce, as of 0218 GMT.
* U.S. gold futures GCcv1 rose 0.1% to $2,053.10 per ounce.
* The dollar index .DXY fell 0.1%, and yields on benchmark 10-year Treasury notes US10YT=RR slipped to 4.0921%, making non-yielding bullion more appealing for other currency holders. US/USD/
* Investors will be watching out for U.S. weekly jobless claims data due at 1330 GMT after last week’s monthly non-farm payrolls report came in stronger-than-expected, showing signs of persistent strength in the labor market.
* The U.S. regional banking sector remained a concern as Moody’s downgraded New York Community Bancorp NYCB.N to junk citing pressure on its funding and liquidity.
* The KBW regional banking index .KRX pared losses but still ended lower and is down more than 5% so far this month.
* Fed officials want to hold off on cutting interest rates until they have more confidence that inflation is headed down to 2%, and gave a range of reasons for feeling little urgency to start easing policy soon or to move quickly once they do.
* Lower rates decrease the opportunity cost of holding bullion.
* China’s consumer prices extended their decline for a fourth month in January while producer prices also dropped, underscoring deflationary risks facing the world’s second-biggest economy as it struggles to mount a solid recovery.
* Spot silver XAG= rose 0.2% to $22.23 per ounce, platinum XPT= was flat at $879.59, while palladium XPD= hit a five year low, losing 0.2% to $893.31.
DATA/EVENTS (GMT)
0430 India Repo Rate —
1330 US Wkly Jobless Clm w/e Feb. 3
1330 US Fed’s Barkin speaks —
1500 US Wholesale inventories Dec
1705 US Fed’s Barkin speaks —
2350 Japan Broad Money Jan
(Reporting by Harshit Verma in Bengaluru; Editing by Rashmi Aich)
((Harshit.Verma@thomsonreuters.com;))
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