Gold steadies near 1-month peak ahead of US inflation data

GOLD prices were little changed on Wednesday (Nov 9), near a one-month high hit in the previous session, while focus shifts to US inflation data due later this week.

Spot gold was 0.1 per cent down at US$1,709.80 per ounce, as of 0050 GMT. US gold futures fell 0.1 per cent to US$1,714.10.

Bullion prices breached the key US$1,700 level and hit a one-month peak in the previous session, following a fall in the dollar and bond yields as well as some technical buying.

Investors' focus remains on the US consumer price index report due on Thursday. The data is likely to offer cues on US Federal Reserve's rate hike stance.

Although gold is seen as an inflation hedge, rising rates increase the opportunity cost of holding bullion.

The European Central Bank (ECB) will continue to raise borrowing costs even as the eurozone economy suffers because letting inflation stay high would be even more painful, two top ECB policymakers said on Tuesday.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.3 per cent to 908.38 tonnes on Tuesday from 905.48 tonnes on Monday.

Spot silver was flat at US$21.35. Platinum fell 0.1 per cent to US$996.99 and palladium was down 0.5 per cent to$1,912.02. REUTERS

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