PRECIOUS-Gold flat as traders await U.S. inflation data, Fed meet next week
Shafaq News/ Gold prices were flat on Friday, with cautious investors focussing on key U.S. inflation data and Federal Reserve’s rate hike decision due next week.
FUNDAMENTALS
* Spot gold were little changed at $1,788.56 per ounce, as of 0038 GMT. U.S. gold futures were steady at $1,800.60.
* Bullion prices were set for a weekly loss of 0.5%, while the dollar index was headed for a week of gains.
* Market participants now expect a 93% 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 U.S. 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 labor market despite growing fears of a recession.
* The U.S. 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% lower to $23.05, platinum rose 0.2% to $1,005.10 and palladium lost 0.7% to $1,913.32.Source: Reuters
* The U.S. 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 XAG= inched 0.1% lower to $23.05, platinum XPT= rose 0.2% to $1,005.10 and palladium XPD= lost 0.7% to $1,913.32.
Source: Reuters
