Gold climbs higher as traders watch US inflation data, Fed meets

  • Global stocks rise as Omicron worries ease
  • Dollar is hovering near the one-week high
  • FOMC meets on May 14-15 December

December 7 (Reuters) – Gold rose on Tuesday as investors’ attention was drawn to US inflation data expected this week that could affect the pace at which the Federal Reserve raises interest rates.

Spot gold rose 0.2% to $ 1,782.39 an ounce by 1:40 p.m. ET (1840 GMT). US gold futures gained 0.3% to 1,784.70.

“At the moment it seems more like a consolidation move,” said Craig Erlam, senior market analyst at OANDA. He said the market is keeping an eye on next week’s Fed meeting and investors are looking for more clarity on interest rates in a time of uncertainty about the Omicron coronavirus variant.

Register now for FREE unlimited access to

to register

Friday’s US consumer price index report could guide the Fed’s monetary policy in the run-up to the Federal Reserve’s Open Market Committee meeting on May 14-15. Affect December.

The phone call between Biden and Russia is being watched closely as any major geopolitical uncertainty would support gold, but gold bullion prices could fall if the Omicron situation doesn’t worsen, said Jim Wyckoff, a senior analyst at Kitco Metals.

US President Joe Biden told Russian President Vladimir Putin on Tuesday that the West was concerned that Russia would invade Ukraine and warned against “strong economic and other measures” as punishment should Moscow start a military conflict. Continue reading

Global stocks rose on the day concerns about the Omicron variant subsided after senior US infectious disease official Anthony Fauci told CNN, “As of now, it doesn’t look like it has a major severity “.

To limit the profits of gold, the dollar (.DXY) rose, which increased the cost of gold bullion for foreign buyers.

Platinum was up 1.7% to $ 953.06 an ounce, palladium was up 0.5% to $ 1,845.45, and silver was up 0.6% to $ 22.49.

Average prices for gold, silver, and platinum will be almost the same next year as they were in 2021, while palladium will fall, consulting firm Metals Focus said, forecasting oversupply of all metals except silver.

Register now for FREE unlimited access to

to register

Bharat Govind Gautam and Asha Sistla in Bengaluru; Additional coverage from Ashitha Shivaprasad; Editing by Amy Caren Daniel and Ramakrishnan M.

Our Standards: The Thomson Reuters Trust Principles.

Comments are closed.