PRECIOUS-Gold steadies near one-month high buoyed by softer dollar, yields

BY Reuters | TREASURY | 10/13/21 09:28 PM EDT

Oct 14 (Reuters) - Gold prices hovered near a one-month peak on Thursday as the dollar and longer-dated Treasury yields retreated from recent highs following hotter-than-expected U.S. inflation data.

FUNDAMENTALS

* Spot gold was little changed at $1,793.72 per ounce by 0100 GMT. Prices hit their highest level since Sept. 16 at $1,795.81 on Wednesday.

* U.S. gold futures slipped 0.1% to $1,792.20.

* Making the precious metal cheaper for holders of other currencies, the dollar index fell 0.5% overnight, retreating from a more than one-year high.

* Benchmark U.S. 10-year Treasury yields pulled back from a more than four-month high, reducing the opportunity cost of holding non-interest bearing gold.

* U.S. consumer prices increased solidly in September as Americans paid more for food, rent and a range of other goods, putting pressure on the Biden administration to urgently resolve strained supply chains, which are hampering economic growth.

* Minutes from the Federal Reserve's September meeting showed the central banks could start reducing its crisis-era support for the U.S. economy by mid-November, but policymakers remained split over how big of a threat high inflation represents and how soon they may need to raise rates in response.

* A group of banks that partnered with the London Metal Exchange to launch gold and silver futures in 2017 is preparing to abandon the project after hoped-for volumes did not materialise, three sources with direct knowledge of the matter said.

* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.2% to 982.72 tonnes on Wednesday from 985.05 tonnes on Tuesday.

* Spot silver rose 0.1% to $23.09 per ounce, having hit a near one-month high in the previous session.

* Platinum was flat at $1,019.68 and palladium eased 0.1% to $2,103.81, having jumped as much as 5.2% on Wednesday. DATA/EVENTS (GMT) 0130 China PPI, CPI YY Sept 1230 US Initial Jobless Clm Weekly (Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren Daniel)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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