* Spot gold firmed 0.1% to $1,872.53 per ounce, as of 0059 GMT, while U.S. gold futures edged 0.1% higher to $1,876.60.
* Gold is seen as a safe-haven in times of economic crises, and hit its highest since May 9 earlier in the session at $1,877.05 per ounce.
* However, benchmark U.S. 10-year Treasury yields
also rose to their highest since May 9, capping demand for zero-yield gold.
* Also limiting gains in greenback-priced gold, the dollar
climbed to its highest in nearly four weeks.
* Gold prices saw volatile trading on Friday, as focus turned to economic risks after elevated U.S. inflation readings bolstered bets for aggressive interest rate hikes.
* Global equity markets slumped and the dollar strengthened on Friday after a bigger-than-expected U.S. inflation spike in May raised concerns the Federal Reserve may tighten policy for too long and cause a sharp slowdown.
* U.S. consumer prices accelerated in May, suggesting that the country’s central bank could continue with its 50 basis points interest rate hikes through September to combat inflation.
* It’s a central-bank heavy week ahead, with the Fed expected to deliver its second straight half-point rate hike to bring inflation under control.
* Bullion is often seen as an inflation hedge, but the opportunity cost of holding it is higher when the Fed raises short-term interest rates, as gold yields no interest.
* Spot silver dipped 0.9% to $21.68 per ounce, platinum fell 0.6% to $967.67, and palladium dropped 1.3% to $1,909.49.
DATA/EVENTS (GMT, April)
0600 UK GDP Est 3M/3M 0600 UK GDP Estimate MM, YY 0600 UK Manufacturing Output MM