Gold set for best week in 6 months on inflation woes
Gold was flat on Friday but was set for its biggest weekly jump in six months, as high U.S. consumer prices drove interest in the metal as an inflation hedge.
Gold was flat on Friday but was set for its biggest weekly jump in six months, as high U.S. consumer prices drove interest in the metal as an inflation hedge.
FUNDAMENTALS
* Spot gold was steady at $1,860.81 per ounce by 0110 GMT, after leaping to a five-month peak on Wednesday. U.S. gold futures edged down 0.1% to $1,862.20.
* The metal is on track for its biggest weekly gain since May 7, rising 2.3% so far.
* Inflation pushed more broadly through the economy in October again challenging the Federal Reserve`s outlook for only "transitory" price increases, offsetting recent wage hikes in a blow to consumers.
See Zee Business Live TV Streaming Below:
* The sharp rise in inflation also prompted investors to boost bets that the Fed will raise interest rates sooner than expected.
* Gold has benefited from easy monetary policy introduced to spur economic growth during the pandemic, but any hike in interest rates should reduce the non-interest bearing`s metal`s appeal as it raises its opportunity cost.
* Euro zone inflation expectations are at a risk of continuing to overshoot the European Central Bank`s 2% target next year, according to a Reuters poll of economists.
* Britain`s economic recovery from the coronavirus outbreak lagged behind that of other rich nations in the July-September period, according to official data on Thursday which underscored the interest rate dilemma facing the Bank of England.
* The dollar index soared to its highest since July 2020, pressuring bullion by increasing its cost to buyers holding other currencies.
* Spot silver rose 0.1% to $25.25 per ounce and was en route to its best week in three.
* Platinum was little changed at $1,085.52 and was on course for its biggest weekly rise in a month. Palladium rose 0.2% to $2,063.60.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
07:58 AM IST