March 13 (Reuters) - Gold prices climbed on Friday,
supported by a weaker dollar and declining U.S. Treasury yields,
while investors assessed the economic implications of an
escalating Middle East conflict.
FUNDAMENTALS
* Spot gold was up 0.7% at $5,112.34 per ounce, as of
0059 GMT. U.S. gold futures for April delivery edged
0.2% lower to $5,115.80.
* Bullion, however, has lost roughly 1% so far this week,
weighed down by fading hopes for near-term U.S. interest-rate
cuts as higher energy prices fuel inflation concerns.
* The dollar nudged lower, making greenback-priced
commodities such as bullion cheaper for holders of other
currencies.
* The U.S. 10-year Treasury yields eased,
increasing the appeal of non-yielding bullion.
* Heightening geopolitical tensions, Iran's Supreme Leader
Mojtaba Khamenei said on Thursday that Tehran will keep the
strategic Strait of Hormuz closed as leverage against the United
States and Israel, a development that has stoked concerns about
global energy supply and risk assets.
* Oil prices rose above $100 a barrel, as attacks on oil
tankers in the Gulf and warnings from Iran shattered prospects
of quick de-escalation in the Middle East conflict.
* As oil prices surged, U.S. President Donald Trump again
demanded Federal Reserve Chair Jerome Powell cut interest rates.
* Goldman Sachs analysts on Thursday pushed back their
forecast for the next U.S. Fed rate cut to September and
December, from June previously.
* Traders expect the Fed to keep rates steady in the current
3.5%-3.75% range at the end of its two-day meeting on March 18,
according to CME Group's FedWatch tool.
* While recent inflation data suggest price growth is under
control, the war on Iran and the resulting spike in crude prices
have yet to filter through the data.
* Investors are now awaiting release of January's delayed
Personal Consumption Expenditures Index, due later in the day.
* Spot silver was up 1.5% at $85.03 per ounce. Spot
platinum gained 1.3% to $2,159.01 and palladium
rose 0.8% to $1,630.71.
DATA/EVENTS (GMT)
1230 US Consumption, Adjusted MM January
1230 US Core PCE Price Index MM, YY January
1230 US PCE Price Index MM, YY January
1230 US Durable Goods January
1230 US GDP 2nd Estimate Q4
(Reporting by Noel John in Bengaluru; Editing by Sherry
Jacob-Phillips)
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