* Gold heads for fourth straight weekly gain
* U.S. 10-year Treasury yield rises above 1.6%
* Biden to seek $6 trillion in federal spending for FY 2022-report (Recasts, adds comments, and updates prices)
May 28 (Reuters) - Gold prices edged lower on Friday, as an uptick in the dollar and U.S. Treasury yields weighed on the safe-haven metal, while investors awaited crucial U.S. inflation data due later in the day to gauge inflationary pressure.
Spot gold was down 0.2% at $1,893.07 per ounce by 0308 GMT. Bullion has risen 0.7% so far this week, and was on track for its fourth straight weekly gain.
U.S. gold futures eased 0.1% to $1,896.20.
“Gold has been a little bit on the defensive side. Technically it was very overbought, and on the fundamental side, the dollar had a big move up yesterday and that started to impact gold,” ED&F Man Capital Markets analyst Edward Meir said.
“Gold is likely to consolidate around this $1,900 mark for a little while longer. Maybe with the next set of numbers that are more inflationary we could start another move up.”
The dollar index was up 0.1% against rivals, while the U.S. 10-year Treasury yield rose to 1.617%, aided by strong U.S. economic data.
Meanwhile, the New York Times reported on Thursday that U.S. President Joe Biden will seek $6 trillion in federal spending for the 2022 fiscal year, a day before the White House is expected to unveil its budget proposal.
Investors now await the monthly U.S. personal consumption report due later in the day.
“It is likely that even if inflation is higher than expected, the central bankers are going to be still dovish,” Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.
“What really matters for gold are real rates and central bankers would continue to keep the rates low, which would be bullish for gold.”
Elsewhere, silver fell 0.5% to $27.78 per ounce, platinum eased 0.2% to $1,178, while palladium edged 0.1% higher to $2,808.18.
(Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips)
Source: Reuters