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Gold hovers near 5-month peak on weaker dollar, inflation jitters

· Gold prices on Tuesday traded near a five-month high scaled last week, supported by a softer dollar and growing inflationary pressures, while investors awaited key U.S. data that will provide a clearer picture on the global economy’s recovery path.

· Spot gold was steady at $1,907.54 per ounce by 0048 GMT. Last week, gold prices hit their highest since Jan. 8 at $1,912.50.

· U.S. gold futures edged 0.3% higher to $1,910.60 per ounce.

· The dollar index was down 0.3% against its rivals, making gold less expensive for other currency holders. The U.S. unit registered its second consecutive monthly loss.

· Last week, data showed U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2% target and posting its largest annual gain since 1992.

· Gold, often used as a hedge against inflation, has benefited from recent data showing a rise in prices in the United States and Britain.

· Factory activity in Japan expanded at a slower pace in May as growth in output and new orders eased, and though external demand remains strong worries are growing that domestic coronavirus emergency curbs could derail the economic recovery.

· Palladium rose 0.5% to $2,844.19 per ounce, silver eased 0.1% to $28.03, and platinum gained 0.2% to $1,188.38.

· Euro zone factory growth, input costs hit record highs in May -PMI

Euro zone manufacturing activity expanded at a record pace in May, according to a survey on Tuesday which suggested growth would have been even faster without supply bottlenecks that have led to an unprecedented rise in input costs.

IHS Markit's final Manufacturing Purchasing Managers' Index (PMI) rose to 63.1 in May from April's 62.9, above an initial 62.8 "flash" estimate and the highest reading since the survey began in June 1997.

An index measuring output, which feeds into a composite PMI due on Thursday and is seen as a good guide to economic health, eased from April's 63.2 to 62.2. Anything above 50 indicates growth.

· UK house prices jump by 10.9%, could speed up further- Nationwide

British house prices jumped by an annual 10.9%, the most in nearly seven years, and they look set to accelerate further as people seek new homes after the pandemic, mortgage lender Nationwide said.

· BoE monitoring UK housing boom as it weighs inflation risk -Dep Gov

The Bank of England is carefully monitoring Britain’s booming housing market as it weighs up the possibility that a rapid recovery from the COVID-19 pandemic will lead to a sustained period of inflation, Deputy Governor Dave Ramsden said.

· China's new home prices rise for third month in May - private survey

New home prices in China rose in May, extending the uptrend for a third month with the heat spreading to more cities as developers made faster sales, a private survey showed on Tuesday.

New home prices in 100 cities rose 0.34% in May from a month earlier, quickening slightly from 0.23% in April, according to data from China Index Academy, one of the country’s largest independent real estate research firms.

· Australia central bank holds rates as economy bolts ahead, A$ slips

Australia’s central bank left its cash rate at record lows on Tuesday and reiterated its lower-for-longer policy stance even as data showed the country’s economic output was above its pre-pandemic level and house prices were shooting through the roof.

· Australia's Victoria state calls for patience on end of COVID-19 lockdown

Australia's Victoria state authorities said on Tuesday that it was still unclear whether a snap one-week lockdown to contain a fresh COVID-19 outbreak would end as planned on Thursday night, as the state grapples with a growing virus outbreak.

· Asia’s factories sustain expansion but supply squeeze dims outlook

Asia’s factory activity continued to expand in May thanks to an ongoing recovery in global demand, surveys showed on Tuesday, though rising raw material costs and supply chain constraints clouded the outlook.

A spike in COVID-19 infections in some countries could disrupt supply chains, posing a headache for manufacturers and weighing on Asia's export-driven recovery, analysts say.

· Sinovac shot controls Covid-19 in Brazilian town after 75% covered

· Iran fails to explain uranium traces found at several sites -IAEA report

· S.Korea May exports at full throttle, set fastest pace in 32 years

South Korea exports logged their sharpest expansion in 32 years in May, marking another robust month of shipments fuelled by stronger consumer demand globally as many economies start to reopen.

Surging chip and car shipments helped power a 45.6% surge in South Korea's exports from a year earlier, government data showed on Tuesday, posting the fastest growth since August 1988 and extending their expansion to a seventh month in a row.

Exports growth, however, slightly missed a consensus of a 48.5% gain in a Reuters poll.

· N.Korea's ruling party sets up new post under leader Kim -Yonhap

· Zero Covid? Taiwan outbreak shows that’s not a long-term solution, says professor

The latest Covid-19 outbreak in Taiwan is a lesson that a containment strategy aiming for zero local transmission may not be sustainable in the long term, a public health professor said Tuesday.

· Myanmar military fails to quell protests four months after coup

Reference: CNBC, Reuters