PRECIOUS-Gold falls as U.S. Treasury yields firm; all eyes on Fed rate decision

April 28 (Reuters) – Gold prices fell on Wednesday, pulled down by firmer U.S. Treasury yields with investors looking out for policy cues from the Federal Reserve’s meeting, while palladium eased after hitting a record peak in the previous session.


* Spot gold was down 0.5% at $1,767.76 per ounce by 0131 GMT. U.S. GCv1 were down 0.5% at $1,770.00 per ounce.

* Palladium fell 0.6% to $2,924.12 per ounce, after hitting an all-time high of $2,962.50 on Tuesday.

* Benchmark U.S. 10-year Treasury yields rose to their highest since April 15, increasing the opportunity cost of holding non-yielding bullion. US/

* The rose 0.1% against its rivals, making gold less appealing for other currency holders. USD/

* Market participants awaited the U.S. Fed’s statement due later in the day, for cues on the central bank’s monetary policy. Japanese retail sales rose at the fastest pace in five months in March as consumer demand recovered from the huge hit it took from the COVID-19 pandemic last year. U.S. consumer confidence jumped to a 14-month high in April as increased vaccinations against COVID-19 and additional fiscal stimulus allowed for more services businesses to reopen, boosting demand and hiring by companies. Analysts and traders have slashed their gold price forecasts, with many believing a return to last year’s record highs is unlikely as economic recovery tarnishes the safe-haven metal’s appeal, a Reuters poll showed on Tuesday. Senior U.S. officials on Tuesday pledged sustained support for India in helping it deal with the world’s worst current surge of COVID-19 infections. fell 0.9% to $26.00 per ounce. Platinum was down 1% at $1,216.75.

DATA/EVENTS (GMT) 0600 Germany

GfK Consumer Sentiment

May 0645 France

Consumer Confidence

April 1800 US

Federal Open Market Committee announces its

interest rate decision followed by statement

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