Gold inches up as dollar steadies after recent gains

Gold prices inched up early Monday as the US dollar steadied after a recent run of gains, weighed down by a decline in the benchmark US 10-year Treasury yield.

FUNDAMENTALS

Spot gold rose 0.1 per cent to $ 1,323.20 per ounce at 0115 GMT.

US gold futures for June delivery were up 0.1 per cent at $ 1,324.40 per ounce.

The dollar index , which touched a three-and-a-half month high of 91.986 on Friday, was little changed at 91.565.

The US 10-year yield fell 3 basis points on Friday to 2.957 per cent , pulling back from a four-year high of 3.035 per cent hit on Wednesday.

The US economy slowed in the first quarter as consumer spending grew at its weakest pace in nearly five years, but a surge in wages amid tightening labor market conditions and lower tax rates suggested the setback is likely temporary.

North Korean leader Kim Jong Un plans to invite experts and journalists from the United States and South Korea when the country shuts its nuclear test site in May, Seoul officials said, as US President Trump pressed for total denuclearisation ahead of his own unprecedented meeting with Kim.

The leaders of Germany, France and Britain urged the US government on Sunday to steer clear of imposing unilateral trade measures against the European Union.

More than 100 countries are on holiday on May 1 for May Day.

Hedge funds and money managers trimmed their net long position in COMEX gold contracts and switched to a net long position in silver contracts in the week to April 24, US Commodity Futures Trading Commission (CFTC) data showed on Friday.

Physical gold demand lacked vigour in most Asian hubs lsat week amid a slight dip in prices, while the yellow metal switched to a premium in India for the first time in over 1-1/2 months due to a correction in local rates.