PRECIOUS-Gold struggles for momentum as firm dollar, higher bond yields weigh

Shafaq News/ Gold prices struggled for momentum on Friday in thin trading as Chinese markets were closed for the Lunar New Year break, while a stronger dollar and elevated Treasury yields countered safe-haven demand fuelled by the lingering Middle East concerns.

FUNDAMENTALS

* Spot gold XAU= was little changed at $2,034.19 per ounce, as of 0213 GMT. Bullion has declined 0.2% so far in the week.

* U.S. gold futures GCcv1 were flat at $2,049.00 per ounce.

* China's Shanghai Futures Exchange is closed from Feb. 9 to 16 for the Lunar New Year holidays.

* The dollar index .DXY has risen 0.2% so far in the week, on track for a fourth consecutive weekly gain. Yields on benchmark 10-year Treasury notes US10YT=RR have risen about 11 basis points so far this week to 4.1443%. US/USD/

* A stronger dollar makes non-yielding gold more expensive for other currency holders by increasing the opportunity cost of holding bullion.

* Weekly data on unemployment benefits in the U.S. pointed to a resilient labour market.

* Markets were anything but sure about a May rate cut in the U.S. before a blowout jobs report prompted traders to trim bets.

* Concerns lingered about the Middle East as Israeli forces bombed areas in the southern border city of Rafah after Prime Minister Benjamin Netanyahu rejected a Hamas truce proposal.

* Market focus will shift next week to a U.S. consumer price index report after Fed officials said they would hold off on cutting interest rates until they had more confidence that inflation was headed down to 2%.

* Spot palladium prices fell below those of sister metal platinum for the first time since April 2018 on Thursday.

* Spot platinum XPT= rose 0.6% to $890.17 per ounce and palladium XPD= climbed 0.4% to $890.68, while silver XAG= was steady at $22.58.

(REUTERS)