Gold flat as dollar holds firm on Fed taper bets
[BENGALURU] Gold traded flat in early Asian trade on Tuesday as the dollar held firm on expectations that the Federal Reserve will announce a tapering of its bond purchases next month.
Spot gold was unchanged at US$1,753.77 per ounce by 1.23 am GMT, while US gold futures were little changed at US$1,754.90.
The dollar hovered close to a 1-year high touched last month amid surging energy prices and expectations the US central bank would soon start normalising policy.
Gold is seen as a hedge against inflation and currency debasement likely from the widespread stimulus. The Fed's tapering could tackle both those conditions, diminishing bullion's appeal.
The current bout of inflation in the euro zone is not a trigger for monetary policy action as growth in services prices and wages remains weak, European Central Bank chief economist Philip Lane said on Monday.
Russia's Nornickel, the world's largest producer of palladium, has cut its deficit estimate for the global palladium market this year and next year due to the flagging recovery of the auto sector, a senior executive told Reuters.
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Spot silver fell 0.2 per cent to US$22.52 per ounce, while platinum dropped 0.5 per cent to US$1,003.87.
Palladium was down 0.4 per cent to US$2,103.16, having hit its highest since Sep 10 at US$2,182.67 on Monday.
REUTERS
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