Gold Edges Up Ahead of Key US Inflation Data That May Sway Fed
Gold inched higher to stay within a narrow trading range where it’s been for the past week, with investors looking ahead to US data that may offer clues on the Federal Reserve’s rate decision this month.
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US nonfarm payroll figures due later this week may influence the Fed’s move on Dec. 18, with swaps markets pricing in almost a 75% chance that the central bank will cut by a quarter point. Lower rates typically benefit non-interest bearing gold.
“The US economy is in the spotlight this week, due to the busy data calendar and the plethora of Fed speakers,” said Priyanka Sachdeva, senior market analyst with Phillip Nova Pte. “However, the ongoing concerns surrounding Russia and Ukraine are likely to limit any significant downside for gold.”
Bullion traded around $2,646 an ounce, after dipping 0.2% on Monday due to a strengthening dollar, which makes the metal more expensive for many buyers.
The precious metal has fallen about 5% from a record high in late October, weighed down by a stronger dollar and easing tensions in the Middle East that have reduced its safe-haven demand. Still, prices remain up more than 28% this year, supported by US monetary easing and central-bank purchases.
Gold rose 0.3% to $2,646.42 an ounce as of 3:04 9.m. in Singapore. The Bloomberg Dollar Spot Index added 0.1% after climbing 0.5% on Monday. Silver advanced more than 1%, while platinum and palladium edged higher.
Source: www.Bloomberg.com