PRECIOUS-Gold eases as yields rise, investors book profits

By Sherin Elizabeth Varghese

Aug 4 (Reuters) - Gold eased on Monday due to slightly firmer U.S. Treasury yields and profit-taking following last week's sharp rally driven by weak U.S. jobs data.

Spot gold XAU= lost 0.2% to $3,356.91 per ounce, as of 1051 GMT, after rising more than 2% on Friday.

However, U.S. gold futures GCcv1 gained 0.3% to $3,410.20.

The benchmark 10-year Treasury yield US10YT=RR ticked higher from Friday's five-week low, dulling non-yielding bullion's appeal. US/

"The market will remain range bound with today's pullback being in line with some the reversals seen across markets following Friday's big moves, especially yields which are a tad firmer and stocks which have seen a rebound," Saxo Bank's head of commodity strategy, Ole Hansen, said.

A rebound in stock markets, alongside a stabilizing dollar, also reflected a buy-the-dip mood following last week's payrolls-driven retreat. MKTS/GLOB

While gold is struggling to break higher, stagflation risks and prospects of further rate cuts are keeping sellers cautious, with a move above $3,430 likely to spark momentum buying, Hansen said.

Meanwhile, U.S. President Donald Trump said he would soon nominate a candidate to fill a vacant Fed seat after Governor Adriana Kugler early resignation.

On the trade front, Trump's newly imposed tariffs on multiple countries are expected to remain during ongoing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.

Citi raised its three-month gold price forecast to $3,500 per ounce from $3,300, citing a deteriorating near-term outlook for U.S. growth and inflation.

Spot silver XAG= rose 0.3% to $37.14 per ounce, platinum XPT= fell 0.3% to $1,311.38 and palladium XPD= was down 0.8% at $1,199.08.

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