PRECIOUS-Gold, silver climb as US yields fall on softer retail sales

Feb 11 (Reuters) - Gold and silver prices rose on Wednesday as U.S. Treasury bond yields fell after data showed December retail sales growth stalled, signalling a softening economy ahead of key jobs data.

FUNDAMENTALS

Spot gold XAU= edged 0.3% higher to $5,038.73 per ounce by 0059 GMT.

U.S. gold futures GCcv1 for April delivery gained 0.6% to $5,060.60 per ounce.

Spot silver XAG= was up 1% at $81.49/oz, after falling more than 3% in the previous session.

U.S. yields fell on Tuesday after a raft of data suggested the economy may be softening, giving the U.S. Federal Reserve more cushion to cut interest rates. US/

Falling yields reduce the cost of holding metals and often come with macro signals that favour them.

U.S. retail sales were unexpectedly unchanged in December as households scaled back spending on motor vehicles and other big-ticket items, potentially setting consumer spending and the economy on a slower growth path heading into the new year.

Federal Reserve Bank of Cleveland President Beth Hammack, however, said on Tuesday that the U.S. central bank faces no urgency to change the setting of interest rates this year amid a "cautiously optimistic" outlook for economic activity.

Investors await the non-farm payrolls report for January, due later in the day, and inflation data on Friday for more cues on the Fed's monetary policy path.

Indian investors piled into gold exchange-traded funds in January as prices soared amid rising geopolitical risks, surpassing flows into equity funds for the first time, industry data showed on Tuesday.

Spot platinum XPT= added 0.6% to $2,098.78 per ounce, while palladium XPD= rose 0.2% to $1,712.25.