March 2 (Reuters) - Gold prices edged higher on Tuesday as a
retreat in U.S. Treasury yields and optimism over the $1.9
trillion coronavirus relief bill lifted the allure of the
non-yielding metal.
FUNDAMENTALS
* Spot gold was up 0.2% at $1,726.84 per ounce by
0046 GMT. U.S. gold futures added 0.1% to $1,723.80.
* Benchmark U.S. Treasury yields eased further from a
one-year high hit last week as Federal Reserve officials
continued to downplay runaway inflation concerns.
* While gold is considered a shield against inflation,
higher yields have of late threatened that status, since they
translate into higher opportunity cost of holding bullion, which
pays no return.
* The U.S. Senate will start debating President Joe Biden's
coronavirus relief bill this week, Senate Majority Leader Chuck
Schumer said on Monday.
* U.S. manufacturing activity increased to a three-year high
in February amid a surge in new orders.
* The European Central Bank slowed its net purchases of debt
last week even as borrowing costs jumped in the financial
markets, casting a shadow over a nascent recovery in the
pandemic-stricken euro zone economy.
* U.S. bank Wells Fargo said it has expanded its
precious metals trading business, filling gaps in the market
left by the withdrawal of Bank of Nova Scotia (Scotiabank)
.
* Holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust , fell 0.8% to
1,084.5 tonnes on Monday.
* Silver gained 0.5% to $26.60 an ounce, while
palladium climbed 0.4% at $2,358.16. Platinum rose
0.7% to $1,193.45.
DATA/EVENTS (GMT)
0330 Australia RBA Cash Rate March
0700 UK Nationwide House Price MM, YY Feb
0855 Germany Unemployment Chg, Rate Sa Feb
1000 EU HICP Flash YY Feb
1000 EU HICP-X F&E Flash YY Feb
(Reporting by Sumita Layek in Bengaluru, Editing by Sherry
Jacob-Phillips)
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