* 10-year US Treasury yields to 5-month high
* Palladium fell more than 3% earlier in the session
Oct. 21 (Reuters) – Gold prices edged down in choppy trading on Thursday, under pressure from rising U.S. bond yields that countered support for concerns about rising inflation and the housing sector in difficulty in China.
Spot gold fell 0.1% to $ 1,780.61 an ounce at 1:38 p.m. EDT (5:38 p.m. GMT). US gold futures for December delivery were down 0.2% to $ 1,781.9 per ounce.
“The Fed will go down and yields are going to hit an all time high, so there is no reason for people to put their money in a nonperforming safety asset like gold,” said Phillip Streible, chief strategist. contracts at Blue Line. Futures in Chicago.
Benchmark 10-year US Treasury yields hit a five-month high as a rapidly recovering economy has renewed questions about when the Federal Reserve will raise interest rates.
While gold is often viewed as a hedge against inflation, reduced stimulus measures and increases in interest rates drive up government bond yields, raising the opportunity cost of holding money. non-productive ingots.
Streible said Evergrande shares ending the session down 12.5% are positive for gold.
Shares in Asia and Europe fell after Evergrande said Wednesday night it canceled a deal to sell a 50.1% stake in its real estate services arm, and inflation concerns also took their toll. on the stairs.
UBS analysts said in a note that rising inflation expectations and easing growth expectations could support gold prices over the next two months.
Two U.S. Federal Reserve officials said on Wednesday that while the central bank is expected to start cutting stimulus, it was too early for interest rate hikes.
Among other precious metals, silver fell 0.8% to $ 24.08 an ounce. Platinum slipped 0.5% to $ 1,044.83 an ounce.
Palladium fell 2.6% to $ 2,018.45 an ounce. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Shailesh Kuber and Ramakrishnan M.)