Gold flat, set for second weekly fall on bigger rate-hike fears

FUNDAMENTALS

* Spot gold was flat at $1,823.20 per ounce by 0113 GMT, after hitting a one-week low of $1,820.99 earlier in the session. U.S. gold futures fell 0.3% to $1,823.80.

* Gold prices have dropped about 0.9% this week.

* The U.S. Federal Reserve’s commitment to reining in 40-year-high inflation is “unconditional,” its chair Jerome Powell told lawmakers on Thursday, even as he acknowledged that sharply higher interest rates may push up unemployment.

* Stocks in global markets rose on Thursday, as U.S. Treasury yields fell to two-week lows, while copper was at 16-month lows as investors worried about a possible global economic slowdown.

* Yields on the benchmark U.S. 10-year Treasury note, however, firmed on Friday, pressuring demand for gold.

* Higher interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest.

* The dollar steadied after an uptick in the previous session, making greenback-priced gold less attractive for buyers holding other currencies.

* SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.81% to 1,063.07 tonnes on Thursday from 1,071.77 tonnes a day earlier.

* Spot silver dipped 0.1% to $20.92 per ounce, and platinum rose 0.6% to $912.00, but both were set for weekly losses.

* Palladium , however, climbed 1.1% to $1,863.62, and has gained about 3% this week.

DATA/EVENTS (GMT)

0600 UK Retail Sales MM/YY May

0800 Germany Ifo Business Climate New Jun

0800 Germany Ifo Curr Conditionss New Jun

0800 Germany Ifo Expectations Jun

1400 US U Mich Sentiment Final Jun

1400 US New Home Sales-Units May