· Gold edged up on Thursday on hopes that the U.S. Federal Reserve would not raise interest rates anytime soon, although a surge in U.S. Treasury yields following a sharp rise in April consumer prices capped gains.
· Spot gold was up 0.1% at $1,816.63 per ounce by 0546 GMT, after falling more than 1% in the previous session.
· U.S. gold futures eased 0.3% to $1,817.40.
· “We’re still getting on the aftershock of that consumer price index release and the expectations now from the market that the Fed will be forced to do something about inflation,” IG Market analyst Kyle Rodda said.
· The Fed, however, has been reiterating that inflation will be so transitory that it won’t have to worry about adjusting interest rates, he added.
· Data on Wednesday showed U.S. consumer prices increased the most in nearly 12 years in April, intensifying concerns over rising inflation.
· Fed Vice Chair Richard Clarida said the twin surprises of weak jobs growth and strong inflation in April has not dented the U.S. central bank’s plans to keep its support for the economy wide open.
· “The Fed is probably quite focused on unemployment as a reason for keeping the narrative dovish,” Nicholas Frappell, global general manager at ABC Bullion, said.
· The Fed pledged to leave borrowing costs unchanged until the economy reaches full employment, and inflation hits 2% and is on track to “moderately” exceed that level for some time.
· “Given the Flexible Average Inflation target, there is awareness that the Fed can allow for some inflationary room,” Frappell added.
· Lower U.S. interest rates put pressure on the dollar and bond yields, raising the appeal of non-yielding bullion.
· However, worries over rising inflation lifted benchmark U.S. 10-year Treasury yields to their highest in more than a month, while the dollar held firm.
· Palladium gained 0.9% to $2,881.61 per ounce. Silver was down 0.5% at $26.90 per ounce, while platinum was up 0.2% at $1,211.87.
· Latest on the worldwide spread of the coronavirus*
Nearly 40% of all global deaths from COVID-19 reported last week happened in the Americas, and nearly 80% of the region's intensive care units are filled with COVID-19 patients, the Pan American Health Organization said.
· U.S. Trade Representative Katherine Tai said she was pushing for a waiver of COVID-19 vaccine intellectual property rights because the United States and drug makers have "an obligation to help save the world right now."
· Brazil will run out of raw materials to produce Sinovac Biotech Ltd's (SVA.O) COVID-19 vaccine by Friday, as a supply shipment has been held up in Chinese export clearance, authorities in the state of Sao Paulo said
· Technical problems derailed Japan's coronavirus vaccination booking system, compounding frustration over the government's handling of new outbreaks of infections and the inoculation drive.
· More than 4,000 Indians die of COVID-19 for second straight day
· Biden urges parents to get kids vaccinated after CDC panel OKs Pfizer vaccine
· Morale in Japan's service sector drops fastest in a year over pandemic
Japan’s service sector confidence fell at the sharpest pace in a year in April, a Cabinet Office survey showed on Thursday, as curbs aimed at containing a resurgence of COVID-19 infections depressed consumer spending.
Analysts expect gross domestic product data due next Tuesday to show the world’s third largest economy shrank in January-March as the curbs hit face-to-face service activity hard.
As private consumption accounts for more than half of the economy, the outlook for the current quarter appears dark as well.
Thai
Eng