May 27 (Reuters) - Gold prices eased on Thursday after
hitting a 4-1/2-month high in the previous session, hurt by an
uptick in the U.S. dollar and bond yields, while investors
awaited key economic readings out of the United States.
FUNDAMENTALS
* Spot gold fell 0.2% to $1,892.42 per ounce by 0100
GMT, after hitting its highest since Jan.8 at $1,912.50 on
Wednesday.
* U.S. gold futures declined 0.4% to $1,894 per
ounce.
* The dollar index was up 0.1% against rivals, moving
further away from a 4-1/2-month low hit earlier this week and
making gold more expensive for other currency holders.
* Benchmark U.S. Treasury yields rose to 1.58%, increasing
the opportunity cost of holding non-interest bearing gold.
* On Wednesday, Fed vice chair for supervision Randal
Quarles said he was prepared to open talks on reducing the
central bank's emergency support measures, only to also stress
the need to remain patient.
* Federal Reserve officials have downplayed rising price
pressures and affirmed their support to keep monetary policy
accommodative for some time.
* Market participants now await key U.S. economic data,
including gross domestic product, jobless claims and consumer
spending.
* South Korea's central bank kept monetary policy unchanged
on Thursday as a surge in coronavirus cases threatened an
export-led economic recovery.
* The European Central Bank should not reduce the pace of
asset purchases from next month, ECB board member Fabio Panetta
said on Wednesday, joining a growing chorus of policymakers
calling for continued stimulus.
* SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.2% to 1,044.08
tonnes on Wednesday from 1,046.12 tonnes on Tuesday.
* Palladium fell 0.2% to $2,739.71 per ounce, silver
slipped 0.4% to $27.59 and platinum dipped 0.7% to
$1,183.59.
(Reporting by Brijesh Patel in Bengaluru; editing by
Uttaresh.V)
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