GOLD prices were flat on Friday (Dec 9), with cautious investors focussing on key US inflation data and Federal Reserve’s rate hike decision due next week.
Spot gold were little changed at US$1,788.56 per ounce, as of 0038 GMT. US gold futures were steady at US$1,800.60.
Bullion prices were set for a weekly loss of 0.5 per cent, while the dollar index was headed for a week of gains.
Market participants now expect a 93 per cent chance of a 50-basis point rate hike at the Fed’s final meeting of 2022 scheduled on Dec 13-14.
Higher interest rates tend to increase the opportunity cost of holding gold as it yields no interest.
Investors will also watch out for the US Consumer Price Index (CPI) report for November due on Dec 13.
The number of Americans filing new claims for jobless benefits increased moderately last week, pointing to a still-tight and strong labour market despite growing fears of a recession.
The US economy is heading into a short and shallow recession over the coming year, according to economists polled by Reuters.
Top gold consumer China’s shift from tough Covid policies, with its promise of driving an economic recovery next year, will instead likely depress growth over the next few months as infections surge, bringing a rebound only later in the year, economists said.
Spot silver inched 0.1 per cent lower to US$23.05, platinum rose 0.2 per cent to US$1,005.10 and palladium lost 0.7 per cent to US$1,913.32.
(Source : Reuters) , all rights reserved by original source.
