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·         Gold prices rose on Friday and were on track to post their best week in six months, with bullion’s appeal as an inflation hedge burnished by a surge in U.S. consumer prices.

·         Spot gold was up 0.3% at $1,866.87 per ounce by 01:54 p.m. ET, en route to a weekly gain of about 2.8%.

·         U.S. gold futures settled up 0.3% at $1,868.5 per ounce.

·         Gold has gained as much as $110 since Nov. 3, bolstered by deepening fears of inflation and reassurances from key central banks that interest rates would remain low for the time being.

·         Prices fell nearly 1% earlier in the session.

·         “It’s a corrective day. Traders are taking profits after an incredible run. Logically, if you are not taking something off the table with a $100 rally, you’d be kind of foolish,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

·         Bullion has also shrugged off strength in the dollar this week as data showing a big jump in U.S. consumer prices in October took centre-stage. A stronger U.S. currency typically dampens demand for bullion among buyers holding other currencies.

·         Societe Generale analysts forecast gold prices to average $1,950 an ounce in the first quarter of 2022, given the “renewed commitment from the Federal Reserve to support the economy while letting inflation printing higher.”

·         Reduced stimulus and interest rate hikes tend to push up government bond yields and raise the opportunity cost of holding gold, which pays no interest.

·         Limiting any upside in gold, yields on the benchmark 10-year note edged higher.

·         Elsewhere, spot silver gained 0.4% at $25.32 per ounce and palladium rose 2.8% to $2,116.45 per ounce.

·         Platinum fell 0.2% to $1,083.49.

 

·         Fed's Kashkari expects higher inflation continuing over next few months

Minneapolis Federal Reserve Bank President Neel Kashkari said on Sunday he expects higher inflation continuing over the next few months but warned that the U.S. central bank should not overreact to elevated inflation as it is likely to be temporary.

 

·         Biden advisers say pandemic, not policies, fueling inflation

U.S. President Joe Biden's economic advisers defended his policies on Sunday amid rising inflation that they said was a global issue related to the COVID-19 pandemic, not a result of the administration's programs.

U.S. consumer prices last week posted their biggest annual gain in 31 years, driven by surges in the cost of gasoline and other goods. Republicans have pounced on inflation worries, claiming that the increase reflects Biden's sweeping spending agenda.

 

·         Euro zone industry output stronger than expected in Sept

Euro zone industrial production dipped by less than expected in September, data showed on Friday, leaving it higher than anticipated year-on-year due to a surge in output of non-durable consumer goods.

The European Union's statistics office Eurostat said industrial production in the 19 countries sharing the euro fell 0.2% month-on-month in September for a 5.2% year-on-year increase.

 

·         ECB asks for governments' help to hit inflation goal

 

·         China's central bank says it will keep property market stable

 

·         Greece sees 2021 tourism recovering after strong Jan-Aug - minister

 

·         China regulator proposes cybersecurity review for some Hong Kong IPOs

 

 

·         COVID-19 UPDATES:

  

·         WHO calls distribution of Covid boosters a ‘scandal’ as poor nations struggle to get first shots

 

·         We’re concerned about a fourth wave of Covid from Europe, Emirates president says

 

·         Vaccines alone won’t end the Covid pandemic, says New Zealand former prime minister

 

·         Japan considering resuming domestic travel subsidies mid-Jan - Nikkei