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Aug 12 (Reuters) – Gold prices drifted higher on Friday helped by a drop in U.S. Treasury yields and setting the metal on path for a fourth straight week of gains, as investors took stock of the recent inflation data out of the United States.

Spot gold rose 0.5% to $1,798.86 per ounce by 1800 GMT and was headed for a more than 1% weekly rise. U.S. gold futures GCv1 also settled up 0.5% at $1,815.5.

“Currently the gold market is seeing some short-covering and is supported by lower yields,” said Bart Melek, head of commodity strategy at TD Securities.

U.S. Treasury yields dipped after a volatile week as investors evaluated whether an apparent slowdown in inflation increases could reduce the speed of Federal Reserve interest rate hikes.

Data released earlier this week indicated that inflation in the U.S. has cooled down, following which market participants toned down expectations of an aggressive rate hike by the Fed.

However, recent Fed commentary continues to be hawkish and have stopped the metal from breaking above the $1,800 level.

“Gold’s rally, after cooler CPI numbers, stopped in its tracks as the market believes inflation will continue to be a problem. Fed speakers have also suggested they can’t afford to relinquish the fight against inflation,” Melek added.

Gold tends to do well in a low-interest environment as it yields no interest.

“Rising risk appetite as seen through surging stocks and bond yields … have so far prevented the yellow metal from making a decisive challenge at key resistance above $1,800,” Saxo Bank analyst Ole Hansen said. .N

Meanwhile, high domestic prices restrained physical gold demand in India this week, while uncertainty surrounding Taiwan-related developments prompted bullion importers in China to hold off on big purchases.

Spot silver rose around 2% to $20.70 per ounce, platinum was up 0.3% at $958.57, while palladium fell 1.8% to $2,235.09.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shounak Dasgupta)

NEW YORK, Aug 12 (Reuters) – Oil prices plunged around 2% on Friday, on expectations that supply disruptions in the US Gulf of Mexico would be short-term, while recession fears clouded the demand outlook.

Futures, however, were still on track for a weekly gain.

Brent crude futures fell USD 1.45, or 1.5%, to settle at USD 98.15 a barrel, while US West Texas Intermediate (WTI) crudeCLc1fell USD 2.25, or 2.4%, to settle at USD 92.09 a barrel. Both contracts gained more than 2% on Thursday.

“We are pulling back a little bit after the big run up yesterday,” said Phil Flynn, an analyst at Price Futures group.

Brent gained 3.4% this week after last week’s 14% tumble on fears that rising inflation and interest rates will hit economic growth and demand for fuel. WTI rose 3.5%.

Crews were expected to replace a damaged oil pipeline piece by the end of the day on Friday, a Louisiana port official said, allowing for the resumption of production at seven offshore US Gulf of Mexico oil platforms.

On Thursday, top US Gulf of Mexico oil producer Shell (SHEL) said it halted production at three deepwater platforms in the region. The three platforms are designed to produce up to 410,000 barrels of oil per day combined.

The Amberjack pipeline, one of two stopped by the leak, has restarted at reduced capacity, Shell spokesperson Cindy Babski said. The Mars pipeline remained offline but is expected to resume operation later on Friday, she said.

The market also absorbed contrasting demand views from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).

“We are seeing an economic slowdown, but its unclear if it’s as big a slowdown as some of the recent outlooks have been predicting,” said Ole Hansen, head of commodity strategy at Saxo Bank. “The demand will ebb and flow, but supply is still the main concern.”

European sanctions on Russian oil are due to tighten later this year while a six-month coordinated energy release agreed by the United States and other developed economies is due to run its course by the end of the year.

On Thursday OPEC cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day (bpd). It now expects demand to rise by 3.1 million bpd this year.

The IEA, meanwhile, raised its demand growth forecast to 2.1 million bpd, citing gas-to-oil switching in power generation

The IEA also raised its outlook for Russian oil supply by 500,000 bpd for the second half of 2022 but said OPEC would struggle to boost production.

In the United States, import prices fell for the first time in seven months in July, helped by a strong dollar and lower fuel and nonfuel costs, while consumers’ one-year inflation outlook ebbed in August, the latest signs that price pressures may have peaked.

US oil rigs rose three to 601 this week, energy services firm Baker Hughes Co. (BKR) said. The rig count, an indicator of future output, has been slow to grow with oil production only seen recovering to pre-pandemic levels next year.

(Reporting by Stephanie Kelly in New York; additional reporting by Noah Browning in London, Sonali Paul in Melbourne and Jeslyn Lerh in Singapore; Editing by Marguerita Choy and David Evans)

Aug 12 (Reuters) – Gold prices were flat on Friday, weighed down by an uptick in the Treasury yields and prospects of US interest rate hikes, although broader weakness in the dollar kept bullion on track for its fourth weekly gain.

FUNDAMENTALS

* Spot gold was flat at USD 1,787.57 per ounce, as of 0120 GMT. However, bullion has gained 0.7% so far this week.

* US gold futures fell 0.2% to USD 1,803.10.

* Benchmark US 10-year Treasury yields were hovering near a three-week peak, increasing the opportunity cost of holding non-interest-bearing gold.

* Data on Thursday showed US producer prices unexpectedly fell in July. It came a day after news that consumer prices (CPI) were unchanged in July due to a drop in gasoline prices.

* San Francisco Federal Reserve Bank President Mary Daly said a 50-basis-point interest rate hike in September “makes sense” given the recent economic data including on inflation, but that she is open to a bigger rate hike if data warrants.

* Earlier this week, US Fed policymakers noted that they would continue to tighten monetary policy until price pressures were fully broken.

* Fed funds futures traders are now pricing in a 61.5% chance of a 50-basis-point hike in September and a 38.5% chance of a 75-basis-point increase.

* Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion.

* The dollar was set for its third weekly loss in four against its rivals. A weaker greenback makes dollar-denominated gold less expensive for other currencies.

* Spot silver eased 0.1% to USD 20.27 per ounce, platinum fell 0.2% to USD 954.32, and palladium was steady at USD 2,277.13.

(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips)

MELBOURNE, Aug 12 (Reuters) – Oil prices dipped in early trade on Friday amid uncertainty on the demand outlook based on contrasting views from OPEC and the International Energy Agency (IEA), but benchmark contracts were headed for weekly gains as recession fears eased.

Brent crude futures fell 34 cents, or 0.3%, to USD 99.26 a barrel at 0112 GMT, while US West Texas Intermediate (WTI) crude futures fell 34 cents, or 0.3%, to USD 94.00 a barrel.

Brent was on track to climb more than 4% for the week, recouping part of last week’s 14% tumble, its biggest weekly decline since April 2020 amid fears that rising inflation and interest rate hikes will hit economic growth and fuel demand.

WTI was heading for a weekly gain of more than 5%, recouping about half of the previous week’s loss.

“There’s a great deal of uncertainty about demand in the short run. Until that settles, it (the market) will be like this for a while,” said Justin Smirk, a senior economist at Westpac.

On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day (bpd). It now expects demand to rise by 3.1 million bpd this year.

That contradicts the view from the IEA. The latter raised its forecast for demand growth, to 2.1 million bpd, due to gas-to-oil switching in power generation as a result of soaring gas prices.

At the same time, the IEA raised its outlook for Russian oil supply by 500,000 bpd for the second half of 2022, as the country’s output had proven more resilient than expected despite sanctions over the Ukraine conflict. However, the IEA said OPEC would struggle to boost production.

“The net picture that the IEA painted was a mix,” said Commonwealth Bank analyst Vivek Dhar. “Russian supply has been more resilient than thought.”

“Assessing global oil balances by the end of the year right now, given what’s happening on the demand side versus what’s happening on supply side – it’s just complicated. That’s why you have the daily volatility.”

(Reporting by Sonali Paul in Melbourne; Editing by Kenneth Maxwell)