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Gold near 2-week lows after strong U.S. data lifts dollar, yields

 

·         Gold prices languished near two-week lows on Friday and looked set for their worst week in three months after robust U.S. economic data boosted the dollar and bond yields, ahead of much awaited May non-farm payroll numbers.

 

·         Spot gold was down 0.1% at $1,869.56 per ounce, as of 0038 GMT, after hitting its lowest since May 20 in the previous session. Prices have fallen 1.7% so far this week.

 

·         U.S. gold futures eased 0.1% at $1,872.10 per ounce.

·         The dollar index rose to a three-week high against its rivals, making gold more expensive for holders of other currencies.

 

·         The benchmark 10-year yield rose to 1.63%, increasing the opportunity cost of holding non-interest bearing gold.

 

·         The number of Americans filing new claims for unemployment benefits dropped below 400,000 last week, while U.S. private employers stepped up hiring in May, spurred by robust demand amid a rapidly reopening economy.

 

·         Meanwhile, a measure of U.S. services industry activity increased to a record high in May.

 

·         Focus now turns to U.S. jobs data later on Friday for further cues on economic recovery and near-term Federal Reserve policy action.

 

·         U.S. stocks ended lower on Thursday, as investors balanced concerns about inflation and the Federal Reserve reining in stimulus with relief about corporate tax hikes.

 

·         Japan’s household spending soared in April, official figures showed on Friday.

 

 

·         U.S. President Joe Biden offered to scrap his proposed corporate tax hike to win Republican backing of infrastructure plan.

·         Silver fell 0.2% to $27.39 per ounce, palladium dipped 0.2% to $2,832.33, and platinum slipped 0.4% to $1,152.21.

·         UK's Sunak hopes for 'significant progress' at G7

 

British finance minister Rishi Sunak said on Friday that he expected good progress at a meeting of finance ministers from the Group of Seven rich nations which he is hosting in London.

“I believe we can make significant progress in tackling some of the world’s most pressing economic challenges,” Sunak told reporters shortly before the meeting began.

Priorities included boosting COVID support for vulnerable countries, speeding up transition to net zero carbon emissions and “ensuring that the way we tax large, global especially digital companies is fair and fit for the modern age,” he said.

 

  

·         Taiwan's COVID-19 vaccine stocks more than doubled by Japan donation

Japan delivered to Taiwan 1.24 million doses of AstraZeneca PLC’s coronavirus vaccine on Friday for free, in a gesture that will more that double the amount of shots the island has received to date.

 

 

·         Vietnam approves China's Sinopharm vaccine for use against COVID-19

 

Reference: CNBC, Reuters