PRECIOUS gold stands still as investors look for guidance from the Fed and inflation data

B.and Bharat Gautam

December 8 (Reuters)Gold prices barely changed on Wednesday, with a depressed dollar offsetting firmer US Treasury yields as investors squared positions ahead of US consumer price data this week.

Spot gold XAU = was nearly unchanged at $ 1,783.50 per ounce at 10:11 a.m. ET (1511 GMT), down from the session high of $ 1,792.90.

US gold futures GCv1 fell 0.1% to $ 1,783.00.

“The only pressure gold is exerting is rising government bond yields, but the upside potential for yields is pretty limited,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

US Treasury benchmark yields rose, making gold less attractive. On the other hand is the dollar index .DXY fell, making gold bars cheaper for holders of other currencies. USD /

Gold is anchored at $ 1,780 to 1,800 an ounce and awaiting clues from the US Federal Reserve and the US consumer price index (CPI), Streible added. MKTS / GLOB

The CPI report due on Friday could affect the Fed’s schedule to provide economic support ahead of its next policy meeting on Nov. 14-15. December reduce.

As the narrative shifts back to central bank tightening policies that should likely boost the US dollar, any uptrend in gold will likely be limited, said Ricardo Evangelista, senior analyst at ActivTrades.

Fewer incentives and rate hikes tend to drive government bond yields higher, which increases the opportunity cost of holding gold that bears no interest.

“Gold isn’t an arrow right now, it’s a feather, and the feather is literally a book square; it’s the people who sell a little here and buy something there, and you can get big moves in thin markets,” said the independent Analyst Ross Norman.

Spot silver XAG = lost 0.2% to $ 22.42 an ounce of platinum XPT = rose 0.2% to $ 935.58 per ounce per palladium XPD = decreased 0.1% to $ 1,850.67.

(Reporting by Bharat Govind Gautam and Asha Sistla in Bengaluru; editing by Amy Caren Daniel)

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.


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