Gold poised for 4th weekly fall on jitters ahead of U.S. inflation
Gold prices edged higher on Friday but were headed for a fourth straight weekly fall as investors stayed away from making big bets ahead of U.S. inflation data that could prompt the Federal Reserve to scale back its bond purchases at a faster pace.
Spot gold rose 0.2% to $1,778.13 per ounce by 0352 GMT. U.S. gold futures gained 0.2% to $1,779.30.
Bullion prices have fallen 0.4% so far in the week as investors exercised caution before the U.S. Consumer Price Index report, due at 1330 GMT, and the Fed policy meeting next week.
"Gold is defending the lower end of the $1,770-$1,810 range because investors are worried about a hawkish Fed pivot, but there's still enough uncertainty around the Omicron variant, which could delay rate hiking cycles, to support gold," said Stephen Innes, managing partner at SPI Asset Management.
Spot silver rose 0.3% to $22.00 an ounce but was headed for a fourth consecutive weekly drop.
Platinum climbed 0.9% to $942.50, en route to its first weekly rise in four. Palladium gained 0.1% to $1,814.74.
· Dollar waits on CPI, yuan bounces back from policy knock
The dollar was firm on Friday as traders wagered U.S. inflation figures could settle the course of interest rate rises next year, while the Chinese yuan regained its footing after being knocked back by official policy.
The euro , seen as vulnerable to a Federal Reserve hike especially if European rate rises lag, dropped 0.4% on Thursday and was steady in Asia at $1.1297.
The dollar index , at 96.197, was drifting toward its seventh consecutive weekly rise ahead of the data, which is due at 1330 GMT. Annual price gains of 6.8% are expected and any upside surprise will likely be interpreted as a case for a faster Federal Reserve taper and sooner interest rate rises.
Consumer confidence data is also due on Friday and if it holds up could portend even more price pressures ahead.
The Fed, European Central Bank, Bank of England and Bank of Japan also all meet next week and the combination of the inflation data and the possibility of a central bank response have set market volatility gauges surging .
· U.S. yields dip after claims data, CPI on deck
U.S. Treasury yields retreated on Thursday, reversing course following three straight days of gains for the 10-year yield, after data on the labor market and ahead of a key reading on inflation.
The yield on 10-year Treasury notes was down 2.2 basis points to 1.487%.
In a note on Thursday, Morgan Stanley chief U.S. economist Ellen Zentner revised her call on the Federal Reserve and now expects the central bank to begin raising rates in September 2022, two quarters earlier than the previous forecast.
· Japan's wholesale inflation hits record high as price pressure broadens
Japan's wholesale inflation hit a record 9.0% in November, pushing gains for a ninth straight month, a sign upward pressure on prices from supply bottlenecks and rising raw material costs were broadening.
The rising cost pressures, coupled with a weak yen that inflates the price of imported goods, add to pain for the world's third-largest economy as it emerges from a consumption slump caused by the coronavirus pandemic.
· UK economy barely grew in October, GDP up by 0.1%
· Bank of Canada says inflation may stay above target longer than expected
· South Korea’s virus surge exceeds 7,000 cases for 3rd straight day
· Oil prices slip on profit-taking, but head for strong weekly gain
Oil prices drifted down on Friday as traders locked in profits from a strong run-up this week, stoked by growing confidence that the rapid spread of the omicron coronavirus variant would not hit global growth and fuel demand.
Benchmark Brent and WTI were both on course to rise more than 6% this week, even after the profit-taking, their first weekly gain in seven weeks.
U.S. West Texas Intermediate (WTI) crude futures fell 7 cents, or 0.1%, to $70.87 a barrel at 0150 GMT, after sliding 2% in a volatile session the previous day.
Brent crude futures slipped 4 cents to $74.38 a barrel after falling 1.9% on Thursday.
· Asia-Pacific markets broadly decline as investors await U.S. inflation data
Reference: CNBC,Reuters
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