(Reuters) – Gold prices touched five-month lows on Thursday, as the U.S. dollar and Treasury yields gained momentum after recent upbeat economic data added weight to expectations the Federal Reserve would carry on with its policy tightening.
FUNDAMENTALS
* Spot gold was subdued at $1,891.70 per ounce by 0141 GMT, dropping to its weakest level since March 15. U.S. gold futures shed 0.3% to $1,921.80.
* Minutes from the Fed’s July meeting showed “most” policymakers continued to prioritize the battle against inflation, while “some participants” cited risks to the economy of pushing rates too far.
* Benchmark 10-year U.S. Treasury yields hit a 10-month high, boosting the dollar to its highest level since mid-June and drawing investors away from non-interest-bearing gold. [GOL/ETF] [US/] [USD/]
* U.S. single-family homebuilding surged in July, in another sign of the economy continuing to defy dire forecasts of a recession.
* China will strengthen the coordination of various policies to boost growth and meet this year’s economic target, according to a cabinet meeting cited by state media on Wednesday.
* Missed payments on investment products by a leading Chinese trust firm and a fall in home prices have added to worries that China’s deepening property sector crisis is stifling what little momentum the economy has left.
* The euro zone’s vast industrial sector rebounded in June, giving overall growth a small boost to end an otherwise weak quarter on a positive note.
* Worries about persistently high inflation in Britain grew as key measures of price growth monitored by the Bank of England failed to ease in July, despite a sharp drop in the headline inflation rate.
* Spot silver was up 0.2% at $22.42 an ounce and platinum steady at $882.50, having touched its lowest since October. Palladium fell 0.3% to $1,205.70.
DATA/EVENTS (GMT)
0900 EU Total Trade Balance SA June
1230 US Initial Jobless Clm Weekly
1230 US Philly Fed Business Indx Aug
(Reporting by Swati Verma in Bengaluru; Editing by Rashmi Aich)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.