Gold flat as firmer dollar, yields weigh, U.S. CPI data awaited
Gold prices were flat on Thursday, as the U.S. dollar and Treasury yields firmed ahead of key inflation data that could provide clues on the Federal Reserve’s next policy move.
Spot gold was flat at $1,782.65 per ounce, as of 0236 GMT. U.S. gold futures fell 0.1% to $1,784.50.
Benchmark 10-year Treasury yields were hovering close to their highest level since Nov. 29 scaled on Wednesday.
The dollar index strengthened 0.1%, further weighing on bullion by raising its cost to buyers holding other currencies.
The U.S. Consumer Price Index (CPI) report is due on Friday, and economists in a Reuters poll forecast November CPI at 0.7%.
The U.S. Fed will raise rates in the third quarter of next year, earlier than expected a month ago, according to economists in a Reuters poll who mostly said the risk was that a hike comes even sooner.
Euro zone inflation will take longer to fall back to target than earlier thought, but so far there is no evidence that high prices are becoming embedded in wages, ECB Vice President Luis de Guindos said on Wednesday.
Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of bullion, which bears no interest.
U.S. job openings surged in October while hiring decreased, suggesting a worsening worker shortage, which could hamper employment growth and the overall economy.
Spot silver fell 0.2% to $22.34 an ounce. Platinum dropped 0.2% to $954.51, while palladium rose 0.4% to $1,862.90.
· Dollar stays soft, with omicron variant still top of investors’ minds
The U.S. dollar recovered slightly against a basket of its peers — the dollar index rose 0.12% to 96.013 from its previous close at 95.984.
· Supply chain disruptions may ease in the second half of 2022, insurer says
Global supply chain disruptions may continue until the second half of next year, trade credit insurer Euler Hermes said in a report published Thursday.
Euler Hermes cited renewed virus outbreaks, China’s zero-Covid policy and expected trade volatility during the Lunar New Year.
Measures to contain Covid-19 can affect manufacturing and shipping operations, exacerbating the supply chain crisis. Analysts have previously warned that the new variant, omicron, could deal another blow to supply chains.
· U.S. FDA authorizes use of AstraZeneca COVID-19 antibody cocktail
The U.S. Food and Drug Administration on Wednesday authorized the use of AstraZeneca's (AZN.L) antibody cocktail to prevent COVID-19 infections in individuals with weak immune systems or a history of severe side effects from coronavirus vaccines.
· German exports shoot up 4.1% in October
German exports grew at their strongest pace in more than a year in October despite persistent supply bottlenecks in manufacturing, data showed on Thursday.
Seasonally adjusted exports increased by 4.1% on the month after falling in August and September, the Federal Statistics Office said.
· UK, Canada join diplomatic boycott of Beijing Winter Games
· Oil stays on the rebound as omicron fears ease
Oil prices extended gains on Thursday on confidence that the omicron coronavirus variant would not dent global growth, even as some governments stepped up curbs to stop its rapid spread.
U.S. West Texas Intermediate (WTI) crude futures rose 28 cents, or 0.4%, to $72.64 a barrel at 0201 GMT, adding to a 0.4% gain in the previous session.
Brent crude futures rose 22 cents, or 0.3%, to $76.04 a barrel, adding to a 0.5% gain on Wednesday.
· Asia-Pacific markets trade mixed as investors assess omicron risks
· European markets edge higher as investors watch omicron and U.S. jobs data
European stocks traded in positive territory on Thursday as investors continue to monitor developments around the omicron Covid variant and look ahead to key U.S. data.
Reference: CNBC,Reuters
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