Gold eases; US inflation data, Fed verdict in focus
GOLD prices inched lower on Monday (Dec 12), dragged down by a firmer dollar, with investors awaiting key US inflation data and Federal Reserve’s rate-hike verdict due this week.
Spot gold slipped 0.2 per cent to US$1,793.44 per ounce, as of 0009 GMT. US gold futures were down 0.3 per cent at US$1,805.90.
The dollar index rose 0.2 per cent, making dollar-priced bullion more expensive for overseas buyers.
Investors will keep a close eye on Tuesday’s US Consumer Price Index (CPI) data and Fed’s final meeting of 2022 scheduled on Dec 13-14.
Traders expect a 93 per cent chance of a 50-basis-point rate hike by the Fed.
Higher interest rates tend to increase the opportunity cost of holding gold as it yields no interest.
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US producer prices rose slightly more than expected in November amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years.
Gold premiums in China rose last week as demand picked up after the top consumer eased Covid-19 restrictions, while high prices muted activity in India.
Spot silver lost 0.7 per cent to US$23.29, platinum fell 0.7 per cent to US$1,014.95 and palladium ticked 0.2 per cent lower to US$1,946.62. REUTERS
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