Gold trims gains as US Treasury yields rise

Gold prices trimmed gains on Thursday as US Treasury yields rose after economic data showed signs of persistent inflation, lowering hopes of the Federal Reserve cutting interest rates anytime soon, reports Reuters.
Spot gold firmed 0.3 per cent at $2,321.70 per ounce by 9:47 a.m. ET (1347 GMT) after rising as much as 0.8 per cent earlier in the session. Prices were down over $100 from an all-time high of $2,431.29 scaled on April 12, fuelled by geopolitical turmoil.
US gold futures rose 0.2 per cent at $2,334.40.
US economic growth slowed more than expected in the first quarter, but an increase in inflation suggested the Fed would not cut interest rates before September.
"Gold is trading on the additional data point that shows that the Fed is not in a position to cut rates anytime soon," said Bob Haberkorn, senior market strategist at RJO Futures.
US Treasury yields hit more than five-month highs after the data was released.
Gold is traditionally known as an inflation hedge but elevated interest rates reduce the allure of holding non-yielding bullion.
Spot silver fell 0.2 per cent to $27.23 per ounce.
Platinum was down 0.2 per cent to $901.10 and palladium lost 1.9 per cent at $982.25.