PRECIOUS-Gold flat as dollar holds firm on Fed taper bets

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October 12 (Businesshala) – Gold traded flat in early Asian trading on Tuesday as the dollar held on to hopes the Federal Reserve would announce a reduction in its bond purchases next month.

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* Spot gold was unchanged at $1,753.77 an ounce as of 0123 GMT, while US gold futures were little changed at $1,754.90.

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* The dollar hit a one-year high last month, amid rising energy prices and hopes the US central bank would soon begin to normalize policy.

* Gold is seen as a hedge against inflation and currency depreciation, potentially with a wider stimulus. The Fed’s tapering could tackle both of those situations, reducing the appeal of bullion.

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* The current bout of inflation in the euro area is not a trigger for monetary policy action as growth in services prices and wages remain weak, European Central Bank chief economist Philip Lane said on Monday.

* Russia’s Nornikel, the world’s largest producer of palladium, has cut its deficit forecast for the global palladium market this year and the auto sector’s flagging recovery next year, a senior executive told Businesshala.

* Spot silver fell 0.2% to $22.52 an ounce, while platinum fell 0.5% to $1,003.87.

* Palladium fell 0.4% to $2,103.16, hitting its highest level since September 10 at $2,182.67 on Monday. Data/Events (GMT) 0600 UK Claimant Count Unam Chang September 0600 UK ILO Unemployment Rate August 0900 Germany Zoo Economic Sentiment October 0900 Germany Z Current Conditions October (Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahoo)

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