PRECIOUS-Gold flat as Yellen's comments on rates counter muted dollar

BY Reuters | ECONOMIC | 05/04/21 09:54 PM EDT
       May 5 (Reuters) - Gold prices were flat on Wednesday, as
concerns over possibility of higher U.S. interest rates
countered a subdued dollar, while palladium held firm after
scaling a record high in the previous session.

    * Spot gold        was unchanged at $1,778.53 per ounce by
0137 GMT, after falling over 1% in the previous session.
    * U.S. gold futures        rose 0.2% to $1,779.00 per ounce.
    * Palladium        rose 0.1% to $2,985.81 per ounce, after
scaling an all-time high of $3,017.18 per ounce on Tuesday.
    * Supply shortfalls were worsened after top producer
Nornickel           announced disruptions at two Siberian mines
due to waterlogging.
    * The dollar index        was down 0.1% against its rivals,
making gold less expensive for other currency holders.
    * U.S. Treasury Secretary Janet Yellen said on Tuesday she
sees no inflation problem brewing, downplaying earlier comments
rate hikes may be needed to stop the economy overheating as
President Joe Biden's spending plans boost growth.
    * Higher interest rates increase the opportunity cost of
holding non-yielding bullion.
    * The U.S. trade deficit jumped to a record high in March
amid roaring domestic demand, which is drawing in imports.

    *  The U.S. economy is growing at its fastest rate since the
early 1980s while household bank accounts are bulging with cash
doled out by the federal government to blunt the impact of the
coronavirus pandemic.
    * Perth Mint's silver sales rose in April on strong demand,
while gold sales eased due to lower output, the refiner said in
a blog post on Tuesday.
    * Silver        was steady at $26.52 per ounce, while
platinum        dipped 0.2% to $1,235.46.

0750  France   Markit Serv, Comp PMIs
0755  Germany  Markit Services PMI
0755  Germany  Markit Comp Final PMI
0800  EU       Markit Serv, Comp Final PMIs
1345  US       Markit Serv, Comp Final PMIs
1400  US       ISM N-Mfg PMI

 (Reporting by Shreyansi Singh in Bengaluru; Editing by Krishna
Chandra Eluri and Rashmi Aich)

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