Gold little changed as traders focus on US inflation data

GOLD prices were little changed in early Asian hours on Friday (Jan 26), as traders awaited US inflation data due later in the day to gauge the Federal Reserve’s rate-hike stance.

Spot gold rose 0.1 per cent to US$1,931.95 per ounce, as of 0030 GMT, and was headed for a sixth consecutive weekly gain. US gold futures were up 0.1 per cent at US$1,932.00.

Investors are now awaiting US personal consumption expenditures (PCE) data due at 1330 GMT for clues on inflation.

On Thursday, bullion prices fell 1 per cent due to a firmer dollar and strong US economic data that could prompt the Fed to keep interest rates higher for longer.

The US economy maintained a strong pace of growth in the fourth quarter as consumers boosted spending on goods, but momentum appears to have slowed considerably towards the end of the year.

Market participants are still expecting the Fed to raise rates by 25 basis points (bps) at its Jan 31-Feb 1 policy meeting.

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Gold steadies near 9-month peak with spotlight on US data

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Lower interest rates tend to be beneficial for bullion, decreasing the opportunity cost of holding the non-yielding asset.

Data from the US Labour Department on Thursday showed initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 186,000 for the week ended Jan 21, the lowest level since April 2022.

Spot silver gained 0.3 per cent to US$23.95 per ounce, platinum rose 0.1 per cent to US$1,018.71, and palladium climbed 0.2 per cent to US$1,680.03. REUTERS