Gold, silver, platinum at 3week lows
Dollar index at 4week peak, bond yields highest since Nov

Aug 3 Reuters Gold prices held near threeweek lows on Thursday after strong U.S. private payrolls data fuelled bets of more monetary policy tightening and boosted the dollar and Treasury yields.

Spot gold was steady at 1,934.39 per ounce by 0530 GMT, trading near the threeweek low it hit in the previous session. U.S. gold futures fell 0.3 to 1,969.90.

This is a buying opportunity, though some further shortterm volatility is possible, especially as bond yields are expected to continue to climb, said Clifford Bennett, chief economist at ACY Securities.

The easy run for gold is over, Bennett said, adding that a strengthening dollar is weighing on prices.

The U.S. dollar index rose to a fourweek peak and benchmark 10year Treasury yields were at their highest since November after data on Wednesday showed U.S. private payrolls rose more than expected last month.

On Friday, the U.S. nonfarm payrolls report for July will be scanned to see whether the Federal Reserve will need more rate hikes to cool inflation.

The Bank of England, meanwhile, is expected to raise rates to a 15year high later on Thursday as inflation remains the highest of the world39;s major economies.

Nonyielding gold is often sought as a safe investment against inflation and economic uncertainty but tends to lose its sheen when rates rise.

Markets also digested Fitch39;s downgrade of the U.S. credit…