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 expect at least two 25-basis-point rate cuts in 2026, with the first one expected in June. Non-yielding bullion tends to do well in low-interest-rate environments. FEDWATCH

* 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.

(Reporting by Ishaan Arora; Editing by Sherry Jacob-Phillips)

((Ishaan.Arora@thomsonreuters.com;))