* Gold down 0.6% for the week, 4% for the month so far
* $1,760 level continues to be major support - analysts
* Platinum set for best month since February 2008
(Adds comments, details, updates prices)
By Sumita Layek
Feb 26 (Reuters) - Gold inched higher after hitting a
one-week low on Friday, but headed for a second straight weekly
and monthly decline as brighter economic outlook and inflation
fears propped up U.S. Treasury yields.
Spot gold was up 0.2% to $1,773.06 per ounce by 0303
GMT, having earlier fallen to its lowest since Feb. 19 at
$1,764.90. Prices were down 0.6% for the week and 4% for the
month so far.
U.S. gold futures fell 0.2% to $1,771.80 on Friday.
Prices had dropped 1.9% on Thursday as benchmark U.S.
Treasury yields hit their highest since the pandemic began,
lifting the dollar.
"Rising inflation expectations as markets price in the
reopening of developed market economies are pushing yields
higher and pressuring gold," said OANDA senior market analyst
Jeffrey Halley.
Higher inflation boosts gold but also lifts Treasury yields,
which in turn increase the opportunity cost of holding
non-yielding bullion.
"While gold is gaining slightly on some risk hedging for the
weekend, the overall picture looks dire. Gold is now in danger
of a material move lower, if yields rise again," Halley said.
Reflecting investor sentiment, holdings in the world's
largest gold-backed exchange-traded fund, SPDR Gold Trust ,
fell 0.6% on Thursday to its lowest since May 2020.
The U.S. Federal Reserve's comment that it is not concerned
with rising bond yields has added to gold's misery, Phillip
Futures said in a note, adding that the $1,760 level continued
to be a major support for the metal.
Silver eased 0.2% to $27.34 an ounce, but was poised
for a third straight monthly rise, while palladium
climbed 0.8% to $2,420.68 and was set to register its best month
in a year with a more than 8% gain.
Platinum rose 0.6% to $1,223.79 and was set to mark
its best month since February 2008 with over 14% gain.
(Reporting by Sumita Layek in Bengaluru; Editing by Devika
Syamnath and Subhranshu Sahu)
.Source
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