PRECIOUS-Gold prices ease as dollar strength dulls appeal

BY Reuters | TREASURY | 07/03/22 09:17 PM EDT
    (Corrects first bullet to say U.S. gold futures rose and not
    July 4 (Reuters) - Gold prices edged lower on Monday, as an
elevated U.S. dollar hurt demand for greenback-priced bullion
and also outweighed support from weakening Treasury yields.

    * Spot gold        was down 0.2% at $1,807.19 per ounce, as
of 0101 GMT, after hitting a five-month low of $1,783.50 on
Friday. U.S. gold futures        rose 0.5% to $1,809.50.
    * The dollar        hovered close to recent two-decade
highs, continuing to make gold less attractive for buyers
holding other currencies, after playing a significant part in
bullion's worst quarterly showing in over a year.
    * Benchmark U.S. 10-year Treasury yields fell to their
lowest level in a month on Friday, buoying prices of
non-yielding bullion.
    * Asian share markets started cautiously on Monday as a run
of soft U.S. data suggested downside risks for this week's June
payrolls report, while the hubbub over possible recession was
still driving a relief rally in government bonds.

    * India has raised its basic import duty on gold to 12.5%
from 7.5%, the government said on Friday, as the world's
second-biggest consumer of the precious metal tries to dampen
demand and bring down the trade deficit.
    * Physical gold dealers in India offered steep discounts
last week as demand remained weak, with the import tax hike
likely to further sap interest, while top consumer China saw
activity bounce back slowly as it emerged from COVID-led curbs.

    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.8% to 1,041.9
tonnes on Friday from 1,050.31 tonnes on Thursday.
    * U.S. Federal government offices, stock and bond markets,
and the Federal Reserve will be closed on Monday for the
Independence Day holiday.
    * Spot silver        eased 0.2% to $19.82 per ounce,
platinum        fell 0.5% to $884.39, and palladium
dropped 0.6% to $1,948.50.

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 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Sherry Jacob-Phillips)

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