PRECIOUS-Gold consolidates as U.S. inflation surges

- Advertisement -


Nov 11 (Businesshala) – Gold prices were flat on Thursday after a jump in US consumer prices took the metal seen as a hedge against inflation in the previous session to a five-month peak.

fundamentals

- Advertisement -

* Spot gold was little changed at $1,850.00 an ounce as of 0100 GMT, after hitting an all-time high on Wednesday, June 15.

- Advertisement -

* US gold futures rose 0.2% to $1,852.00.

* US consumer prices rose in October as Americans paid more for gasoline and food, leading to the biggest annual gain in 31 years, with more signs that inflation will hit uncomfortably high levels in 2022 amid global supply chains can stay.

- Advertisement -

*Gold is often seen as a hedge against rising price levels.

* In another report on Wednesday, the US Labor Department said last week initial jobless claims fell to the lowest level since mid-March 2020.

* San Francisco Federal Reserve Bank President Mary Daly said on Wednesday she expects high inflation to moderate once COVID-19 subsides, and reiterated whether to raise rates for now or accelerate the Fed’s bond-buying taper. Would be “quite premature”.

* Easing monetary policy to boost economic growth amid the pandemic has propelled gold prices to new highs in the past two years, as near-zero interest rates cut the opportunity cost of holding non-yielding bullion .

* Bullion gains came even as the dollar neared a more than one-year high. A strong dollar reduces the appeal of gold as it increases the cost of buying gold for buyers holding other currencies.

* Spot silver rose 0.2% to $24.68 an ounce. Platinum was up 0.1% at $1,068.00, while palladium gained 0.5% to $2,031.70. Data/Events (GMT)

0700 UK GDP Initial Q/Q Q3

0700 UK GDP Preliminary YY Q3 (Reporting by Nakul Iyer in Bengaluru; Editing by Rashmi Aich)

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox