* Gold down 0.8% for the week, 4.2% for the month so far
* $1,760 level continues to be major support - analysts
* Platinum set for fourth straight monthly gain
(Updates prices)
By Sumita Layek
Feb 26 (Reuters) - Gold prices fell to a one-week low on
Friday, and were headed for a second straight weekly and monthly
decline as brighter economic outlook and inflation fears propped
up U.S. Treasury yields.
Spot gold eased 0.1% to $1,767.81 per ounce by 0520
GMT, having earlier fallen to its lowest since Feb. 19 at
$1,764.90. Prices were down 0.8% for the week and 4.2% for the
month so far.
U.S. gold futures fell 0.6% to $1,765.70 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.
"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 their 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 fell 0.7% to $27.19 an ounce, but was poised
for a third straight monthly rise. Palladium dropped 0.8%
to $2,382.02, but was set to register its best month in three
with a 7% gain.
Platinum eased 0.1% to $1,215.09 and was set to mark
its worst week since end-October with a 4.7% decline, but was on
track to gain for a fourth straight month, rising 13%.
(Reporting by Sumita Layek in Bengaluru; Editing by Devika
Syamnath, Subhranshu Sahu and Vinay Dwivedi)
.Source
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