PRECIOUS-Gold prices edge higher as US Treasury yields soften

BY Reuters | ECONOMIC | 06/17/24 09:39 PM EDT

June 18 (Reuters) - Gold prices inched up on Tuesday as the Treasury yields edged lower, while investors looked forward to economic data and comments from Federal Reserve officials throughout the week for clarity on the U.S. central bank's interest rate cut timeline.

FUNDAMENTALS

* Spot gold was up 0.1% at $2,320.60 per ounce, as of 0120 GMT. U.S. gold futures rose 0.3% to $2,335.20.

* Benchmark 10-year U.S. Treasury yields edged down and were last at 4.2673%, making non-yielding bullion more attractive for investors.

* The Fed would be able to cut its benchmark interest rate once this year, Philadelphia Fed President Patrick Harker said on Monday, if his economic forecast plays out.

* Lower rates also make non-yielding gold more attractive.

* Traders are now keeping a close watch on upcoming comments from New York Fed President John Williams and Fed Governor Lisa Cook.

* Fed Chair Jerome Powell is scheduled to give his semi-annual testimony on monetary policy on July 9 at the Senate Banking Committee.

* Investors are also focussed on the release of U.S. retail sales data due at 1230 GMT, weekly jobless claims on Thursday and flash purchasing managers' indices on Friday, which could offer more clarity on consumption and economic strength.

* Spot silver fell 0.1% to $29.47 per ounce, platinum rose 1% at $974.55 and palladium gained 0.1% to $889.69.

DATA/EVENTS (GMT) 1230 US Retail Sales May 0115 US Industrial Production YY May (Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Rashmi Aich)

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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