PRECIOUS-Gold range-bound amid uncertainty over central banks’ inflation response

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(releases, adds comment, updates prices)

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* Dollar falls from 16-month high as rally halts

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* Gold may trade in range of $1,850-$1,875 in near future – Analyst

* Silver demand may increase this year – Silver Institute

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November 18 (Businesshala) – Investors remained torn apart on how fast the US Federal Reserve will ease its monetary stimulus and raise interest rates following recent strong inflation data from the United States in a narrow range on Thursday. Gold was kept.

Spot gold was little changed at $1,864.50 an ounce as of 0923 GMT, while US gold futures fell 0.2% to $1,866.90.

The US dollar paused for breath, slipping back from its 16-month high as traders assessed whether its recent rally was beginning to stall. A weaker dollar makes gold more attractive to buyers holding other currencies.

“At this point in time, it is difficult to find direction for gold due to the uncertainty surrounding the performance of the dollar and the likely reaction of the US Fed and other central banks to inflation,” said Ricardo Evangelista, Senior Analyst at ActiveTrades.

Bullion, which is considered a hedge against inflation, has benefited from a boom in consumer prices in the US and Europe. But it also bets for an early hike in interest rates, which will increase the opportunity cost of holding non-yielding gold.

“Until the Fed really signals a quick taper, gold should hold its current $1,850 and $1,875 range with the possible appointment of Lyle Brainard as the new Fed chair, a considered super pigeon.” , is likely to push it above $1,875,” said Stephen Innes, managing partner at SPI Asset Management.

Spot silver rose 0.2% to $25.09 an ounce.

The Silver Institute said global silver demand could exceed one billion ounces this year for the first time since 2015.

“Silver has repeatedly rebounded from the technically important 200-day moving average… if it crosses this range, it could trade to $26 by the end of the year,” Commerzbank analyst Daniel Breesemann said in a note. can reach.”

Platinum rose 0.8% to $1,065.49, while palladium fell 0.7% to $2,173.70. (Reporting by Arundhati Sarkar and Nakul Iyer in Bengaluru; Editing by Simon Cameron-Moore)

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