PRECIOUS-Gold gains as dollar retreats; investors await U.S. data
* Dollar eases off two-week peak
* Palladium slips from record highs
* BoE slows bond-buying, raises growth outlook (Adds comment, details and updates prices)
May 6 (Reuters) – Gold rose for a second straight session on Thursday after the dollar retreated, as investors awaited U.S. economic data to gauge the Federal Reserve’s strategy on monetary support going forward.
Spot gold gained 0.5% at $1,794.80 per ounce by 1227 GMT. U.S. gold futures rose 0.7% to $1,795.90.
“Market is pricing in a ‘more distant’ probability of a Fed rate hike after clarifications on Treasury Secretary Janet Yellen’s remarks,” said Quantitative Commodity Research Analyst Peter Fertig.
Yellen said on Tuesday she saw no inflation problem brewing, downplaying earlier comments that rate increases may be needed to stop the economy overheating.
“That has been supportive for gold, with yields on long-term…