PRECIOUS-Gold firms near 5-month peak on persistent inflation bets

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* US retail sales data at 1330 GMT . is payable on

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* Gold able to defend its ground against the dollar – Analyst

Nov 16 (Businesshala) – Gold prices rose on Tuesday, nearing a five-month peak in the previous session, as investors feared that inflation would remain prolonged, seeking bullion as a hedge against inflation. Increasing.

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Spot gold was up 0.1% at $1,864.80 an ounce, up by 0836 GMT. US gold futures were up 0.1% at $1,868.20.

Gold prices have risen 1.9% since last Tuesday after data showed a pick-up in US consumer prices in October. “The assumption that US inflation is currently peaking, bullion should hold a good bid, as long as the Fed does not deviate from its patient approach to any rate hikes,” said Han Tan, chief market analyst at Axinity.

Gold also edged up despite the dollar holding steady near a 16-month high and the benchmark US 10-year Treasury yield near a three-week high.

A stronger dollar increases the price of gold for buyers holding other currencies.

“Gold has been able to weather the downside of a strong dollar and could rise to $1,900 by the end of the year,” said Daniel Breesemann, analyst at Commerzbank.

Investors are now eyeing US retail sales data at 1330 GMT, which could affect the Federal Reserve’s stance on interest rate hikes. The data follows weak consumer sentiment readings from last week.

“Further signs that the US economic recovery is waning amid rising consumer prices may lead more investors to look to gold as a safe haven,” said Exinity’s Tan.

Meanwhile, Richmond Federal Reserve Chairman Thomas Barkin said on Monday that the Fed would not hesitate to raise interest rates, adding that the central bank should wait to find out whether inflation and labor shortages could prove more long-lasting. it occurs.

Rate hikes impact gold, as they raise bond yields, which increases the metal’s opportunity cost.

Elsewhere, spot silver rose 0.2% to $25.09 an ounce, platinum rose 0.5% to $1,091.86 and palladium rose 0.3% to $2,160.51. (Reporting by Arundhati Sarkar and Nakul Iyer in Bengaluru; Editing by Shailesh Kuber)

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