July 9 (Reuters) - Gold prices on Friday were set for the
third straight weekly gain, as a slight pullback in the dollar
made bullion less expensive for other currency holders, while a
drop in U.S. Treasury yields also offered support to the
* Spot gold was steady at $1,800.85 per ounce, as of
0108 GMT. Prices have risen 0.8% so far this week.
* U.S. gold futures were steady at $1,801 per ounce.
* The dollar index retreated from a three-month peak
against its rivals.
* Benchmark U.S. 10-year Treasury yields
languished near more than four-month low, reducing the
opportunity cost of holding non-interest bearing gold.
* Data on Thursday showed the number of Americans filing new
claims for unemployment benefits rose unexpectedly last week, an
indication that the labour market recovery from the COVID-19
pandemic continues to be choppy.
* Wall Street lost ground on Thursday, with the S&P 500 and
the Nasdaq pulling back from record closing highs in a broad
sell-off, driven by uncertainties surrounding the pace of the
U.S. economic recovery.
* The European Central Bank set a new inflation target on
Thursday and carved out a major role in the fight against
climate change, embarking on a fundamental transformation of
Europe's most powerful financial institution.
* Global markets won't have a violent "taper-tantrum" like
they did in 2013 even as the Fed is expected to discuss tapering
of asset purchases at its annual gathering at Jackson Hole in
August, three strategists at asset management firms said.
* Some investors view gold as a hedge against higher
inflation that could follow stimulus measures.
* Silver eased 0.1% to $25.89 per ounce, palladium
fell 0.4% to $2,794.19, and platinum edged 0.1%
higher to $1,076.12.
0130 China PPI, CPI YY June
0600 UK GDP Est 3M/3M May
0600 UK GDP Estimate MM, YY May
0600 UK Manufacturing Output MM
(Reporting by Brijesh Patel in Bengaluru, Editing by Sherry