Mumbai, 9 Feb (Commoditiescontrol): Gold prices struggled for momentum on Friday in thin trading as Chinese markets were closed for the Lunar New Year break, while a stronger dollar and elevated Treasury yields countered safe-haven demand fuelled by the lingering Middle East concerns.
Spot gold was little changed at $2,034.19 per ounce. Bullion has declined 0.2% so far in the week. U.S. gold futures were flat at $2,049.00 per ounce.
China's Shanghai Futures Exchange is closed from Feb. 9 to 16 for the Lunar New Year holidays.
The dollar index has risen 0.2% so far in the week, on track for a fourth consecutive weekly gain. Yields on benchmark 10-year Treasury notes have risen about 11 basis points so far this week to 4.1443%.
A stronger dollar makes non-yielding gold more expensive for other currency holders by increasing the opportunity cost of holding bullion.
Weekly data on unemployment benefits in the U.S. pointed to a resilient labour market.
Markets were anything but sure about a May rate cut in the U.S. before a blowout jobs report prompted traders to trim bets.
Concerns lingered about the Middle East as Israeli forces bombed areas in the southern border city of Rafah after Prime Minister Benjamin Netanyahu rejected a Hamas truce proposal.
Market focus will shift next week to a U.S. consumer price index report after Fed officials said they would hold off on cutting interest rates until they had more confidence that inflation was headed down to 2%.
Spot palladium prices fell below those of sister metal platinum for the first time since April 2018 on Thursday.
Spot platinum rose 0.6% to $890.17 per ounce and palladium climbed 0.4% to $890.68, while silver was steady at $22.58.
(By Commoditiescontrol Bureau: 09820130172)
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