2021.05.2810:10:00UTC+00Gold Prices Ease As Investors Await US Inflation Data

Gold prices eased slightly on Friday, as an uptick in Treasury yields and a firmer dollar increased the opportunity cost of holding non-interest bearing gold. Spot gold dipped 0.2 percent to $1,892.84 per ounce, but was set for its fourth straight weekly gain. U.S. gold futures were down 0.1 percent at $1.892.80.

The U.S. dollar climbed against its major opponents as U.S. treasury yields rose before the release of U.S. personal consumption report due later in the day, with a high reading expected to trigger bets for policy tightening.

The core personal consumption expenditures index is expected to grow 2.9 percent year-on-year in April, up from 1.8 percent seen last month.

Although that will be above the Federal Reserve's target of 2 percent, investors expect officials to support the view that policy will remain on hold for some time.

The U.S. budget plan is also in focus, with President Biden planning to propose $6 trillion in federal spending for the 2022 fiscal year.

Biden will release his first full budget later in the day, which outlines investments in infrastructure, childcare and other public works.

U.S. personal income and spending data, wholesale inventories and advance goods trade balance, all for April, and University of Michigan's final consumer sentiment index for May are scheduled for release in the New York session.