for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

PRECIOUS-Gold retreats on firm dollar, yields; U.S. inflation data eyed

    * U.S. inflation data for March due later in day
    * U.S. consumers raise inflation outlook - NY Fed survey

 (Recasts, adds comments; updates prices)
    By Diptendu Lahiri
    April 13 (Reuters) - Gold prices fell on Tuesday as a
stronger dollar and rising Treasury yields dented demand for the
safe-haven metal ahead U.S. inflation data later in the day.
    Spot gold        fell 0.4% to $1,725.15 per ounce by 0633
GMT. U.S. gold futures        were also down 0.4% at $1,726.20
per ounce.
    "At the moment, a stronger dollar and higher yields on
Treasuries are exerting pressure on gold," said Amit Sajeja, a
vice president at Motilal Oswal.
    A stronger dollar pressures gold as the metal becomes
expensive for buyers outside the United States, while higher
returns on bonds increases the opportunity cost for holding
non-yielding bullion.           
    A survey released on Monday by the Federal Reserve Bank of
New York showed U.S. consumers raised their inflation
expectations again in March after gradual increases in recent
months, and became more positive about the job market, boosting
the yields and the dollar.                          
    "It's hard to imagine that gold will not gain today if the
data shows higher inflation, but there is a big chance of it
pulling back later this week if retail sales data comes positive
on Thursday," said Stephen Innes, chief global market strategist
at financial services firm Axi.
    Meanwhile, Boston Fed President Eric Rosengren said the U.S.
economy may see a substantial turnaround this year as a result
of accommodative monetary and fiscal policy, but the job market
still has a lot of space for growth.             
    However, there is a "disagreement between the market and the
Fed", IG Market analyst Kyle Rodda said.
    "Even though several strong voices from the Fed have vowed
to tolerate inflation and keep rates down till the economy
rebounds to satisfactory levels, the market thinks the central
bank will have to taper as early as the beginning of 2022,"
Rodda said.
    Silver        fell 0.1% to $24.81 per ounce, while palladium
       was flat at $2,676.70 per ounce. Platinum        slipped
0.2% to $1,166.82.

 (Reporting by Diptendu Lahiri in Bengaluru; editing by
Uttaresh.V and Subhranshu Sahu)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up