PRECIOUS-Gold set for best week in 6 months on inflation woes

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November 12 (Businesshala) – Gold was flat on Friday but was set for its biggest weekly jump in six months, as higher US consumer prices fueled interest in the metal as a hedge against inflation.

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* Spot gold was stable at $1,860.81 an ounce as of 0110 GMT, after jumping to a five-month peak on Wednesday. US gold futures ended 0.1% lower at $1,862.20.

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* The metal is on track for its biggest weekly gain since May 7, rising 2.3% so far.

* Inflation pushed more broadly through the economy in October, again challenging the Federal Reserve’s view of only “transient” price hikes, offsetting recent wage increases for consumers.

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* The sharp rise in inflation has prompted investors to bet that the Fed will raise interest rates sooner than expected.

*Gold has benefited from easing monetary policy introduced to spur economic growth during the pandemic, but any hike in interest rates should reduce the appeal of the non-interest bearing metal as it increases its opportunity cost. increases.

* Euro zone inflation expectations are at risk of continuing to hit the European Central Bank’s 2% target next year, according to a Businesshala poll of economists.

* Britain’s economic recovery from the coronavirus outbreak lagged that of other prosperous nations in the July-September period, according to official data on Thursday, underscoring the interest rate dilemma facing the Bank of England.

* The dollar index rose to its highest level since July 2020, putting pressure on bullion by raising its cost for buyers holding other currencies.

* Spot silver rose 0.1% to $25.25 an ounce and was heading for its best week in three weeks.

* Platinum was little changed at $1,085.52 and was on course for its biggest weekly increase in over a month. Palladium rose 0.2% to $2,063.60.

Data/Event (GMT) 1500 US You Mitch Sentiment Prelim Nov

Reporting by Nakul Iyer in Bengaluru; Editing by Rashmi Aichi

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