Gold set for second weekly drop on higher-for-longer rate jitters
GOLD prices were on track for their second straight weekly decline on Friday (Sep 15) as US inflation readings for August reinforced market bets for further rate hikes by the Federal Reserve after a likely rate pause next week.
Spot gold was steady at US$1,910.85 per ounce by 0100 GMT. Bullion was on track for a weekly decline of 0.4 per cent after having touched its lowest level since Aug 23 on Thursday. US gold futures were down 0.1 per cent at US$1,932.60.
US producer prices increased by the most in more than a year in August while retail sales also beat expectations, boosted by a surge in petrol prices. This comes after US consumer prices increased by the most in 14 months last month.
The European Central Bank raised its key interest rate to a record high of 4 per cent on Thursday, but signalled that the hike was likely to be its last.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.3 per cent on Thursday.
The London Bullion Market Association called for proposals from service firms to create a secure global database that would improve trust in the gold market’s value chain.
Global demand for silver will decline by 9.4 per cent this year largely due to a drop in investment, but the market will maintain a deficit, according to a report from Chilean state agency Cochilco.
Spot silver rose 0.2 per cent to US$22.67 per ounce. Platinum gained 0.1 per cent at US$907.19 and palladium fell 0.6 per cent to US$1,244.12, both looking poised for weekly gains. REUTERS
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