PRECIOUS-Gold prices up from 3-month lows as dollar surge slows

BY Reuters | TREASURY | 05/15/22 09:27 PM EDT
       May 16 (Reuters) - Gold prices on Monday rose above the
more-than-three-month low level hit in the previous session, as
a weaker dollar outweighed pressure from higher U.S. Treasury

    * Spot gold        was up 0.3% at $1,815.69 per ounce, as of
0057 GMT. U.S. gold futures        gained 0.2% to $1,812.20.
    * Gold fell more than 1% on Friday to its lowest since Feb.
4, and marked its fourth straight weekly decline.
    * The dollar        steadied on Monday after a fall in the
previous session, but the greenback still recorded a sixth
straight weekly gain last week on global economic growth
    * A strong dollar makes rival safe-haven gold less
attractive for buyers holding other currencies.
    * Benchmark U.S. 10-year Treasury yields were up for a
second straight session, limiting demand for non-interest
bearing gold.
    * Inflation will need to move lower for "several months"
before Fed officials can safely conclude it has peaked,
Cleveland Fed president Loretta Mester said Friday, adding she
would be ready to consider faster rates hike by the September
Fed meeting if the data do not show improvement.
    * Although seen as an inflation hedge, bullion is sensitive
to rising U.S. short-term interest rates and bond yields, which
raise the opportunity cost of holding it.
    *  U.S. consumer sentiment slumped to its lowest level in
nearly 11 years in early May as worries about inflation
persisted, but household spending remains underpinned by a
strong labour market and massive savings, which should keep the
economy expanding.
    * Spot silver        was up 0.5% at $21.17 per ounce,
platinum        gained 1.3% to $950.84, and palladium
rose 0.7% to $1,957.88.

 (Reporting by Bharat Govind Gautam in Bengaluru; editing by

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