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

PRECIOUS-Gold slips 1% on elevated yields, dollar strength

    * Dip below $1,850 could signal negative shift for gold-
analyst
    * UK to hike tariffs on platinum, palladium imports from
Russia

 (Updates prices, adds comment)
    By Eileen Soreng
    May 9 (Reuters) - Gold prices retreated 1% on Monday as
elevated U.S. Treasury yields and a surge in the dollar to
two-decade highs dented the appeal of non-yielding bullion.
    Spot gold        was down 1% at $1,865.05 per ounce by 1302
GMT. U.S. gold futures        fell 0.9% to $1,866.20. 
    Buoyed by expectations of aggressive policy tightening by
the Federal Reserve, benchmark 10-year U.S. Treasury yields
            rose to their highest since November 2018 and the
dollar        hovered near its highest level since 2002. That
made gold more expensive for overseas buyers.            
    "Gold is suffering mostly due to the strength of the U.S.
dollar," said Carlo Alberto De Casa, external market analyst at
Kinesis, adding that a fall below the key support level of
$1,850 would be a negative signal. 
    Gold is considered a safe store of value during political
and economic crises but it is highly sensitive to rising U.S.
interest rates and bond yields, which raise the opportunity cost
of holding bullion. 
    Two of the Federal Reserve's policy hawks on Friday pushed
back on the view that the U.S. central bank missed the boat on
the fight against stubborn inflation, citing tightening 
financial conditions that began well before the Fed began
raising interest rates in March.             
    But concerns about global growth, fuelled by rapid inflation
and heightened geopolitical risks, should somewhat support gold
prices, ANZ analysts said in a note.            
    Meanwhile, Britain announced on Sunday it would increase
tariffs on platinum and palladium imports from Russia and
Belarus in new sanctions.             
    Spot palladium        fell 0.1% to $2,049.31 per ounce,
while platinum        shed 1.8% to $945.54 and silver       
fell 1.9% to $21.91.
    Estimates for palladium demand have taken a hit from the
expected decline in global light vehicle production in 2022 due
to the chip shortage and China's COVID-19 curbs, Heraus said in
a note.

 (Reporting by Eileen Soreng and Bharat Govind Gautam in
Bengaluru;
Editing by Aditya Soni)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up