PRECIOUS-Gold prices muted as dollar strength weighs

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Nov 17 (Businesshala) – Gold prices rose on Wednesday after holding the dollar near a 16-month high following a jump in US retail sales, but hovered around recent lows.

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* Spot gold rose 0.2% to $1,854.39 an ounce as of 0207 GMT, but the metal was still just $6 shy of its lowest level since it hit the previous session last Friday. US gold futures rose 0.2% to $1,857.10.

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* U.S. retail sales jumped in October, above expectations, in a sign that high inflation was not yet dampening spending, even as concerns about rising cost of living dented consumer sentiment for November Initially sent to a 10-year low.

* Report pushes dollar to new 16-month high, putting pressure on bullion by raising its cost for buyers holding other currencies.

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* Federal Reserve officials said Tuesday they are cautious about the ways high inflation could affect American households and dampen consumer sentiment and seek to keep it under control.

*Gold, often viewed as inflation-heavy, has benefited from easing monetary policy during the pandemic, but any increase in rates should reduce the appeal of bullion as higher interest rates are more common than the non-interest bearing metal. Opportunities increase costs.

* Britain’s job market hit the end of the government’s furlough scheme last month, according to data that could ease concerns at the Bank of England about the risks of lowering interest rates from its pandemic.

* US President Joe Biden pressed his Chinese counterpart on human rights in a video call that lasted more than three hours, while Xi Jinping warned that China would respond to provocations on Taiwan, according to official accounts from the exchange.

* Spot silver rose 0.6% to $24.95 an ounce. Platinum gained 0.3% to $1,064.73 and palladium rose 0.3% to $2,165.98.

Data/Events (GMT, October) 0700 UK CPI YY 1330 US Housing Start Number (Reporting by Nakul Iyer in Bengaluru; Editing by Rashmi Aich)

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