PRECIOUS-Gold steady as inflation woes offset firmer dollar, yields

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Nov 16 (Businesshala) – Gold prices held steady on Tuesday after rallying to a five-month peak in the previous session, as concerns about broadening inflationary risks dented the safe-haven of bullion in the face of a firmer US dollar and higher bond yields. Haven upheld the appeal. ,


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* Spot gold was flat at $1,862.81 an ounce at 0140 GMT. US gold futures were also flat at $1,866.80.

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* Richmond Federal Reserve Chairman Thomas Barkin said on Monday the US Fed would not hesitate to raise interest rates if it concluded that high inflation threatens to continue, but that the central bank should wait to find out whether Do inflation and labor shortages prove to be more long-lasting.

* Rate hikes impact gold as higher interest rates increase the opportunity cost of the non-yielding metal.

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* Bank of England Governor Andrew Bailey said he was very uneasy about the inflation outlook and his vote earlier this month to freeze interest rates, which rattled financial markets, was a very close call.

* A tightening of monetary policy now to rein in inflation could affect the recovery of the euro area, European Central Bank President Christine Lagarde said on Monday, emphasizing calls for tighter policy and market bets.

* Putting pressure on bullion, the dollar index edged closer to a 16-month high and the benchmark US 10-year Treasury yield was near a three-week peak.

* A stronger dollar makes gold more expensive for buyers holding other currencies, while a higher yield increases the opportunity cost of the metal.

* The US Commodity Futures Trading Commission (CFTC) said on Monday that speculators increased their net long gold futures and options positions to 146,319 for the week ended November 9.

* Spot silver held steady at $25.04 an ounce. Platinum fell 0.1% to $1,085.54 and palladium fell 0.6% to $2,142.19.

Data/Events (GMT) 0700 UK ILO Unemployment Rate September 1000 EU GDP Flash Estimate QQ, YY Q3 1330 US Retail Sales MM October 1415 US Industrial Production MM October

Reporting by Nakul Iyer in Bengaluru; Editing by Sherry Jacob-Phillips


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