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.
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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