Gold flat as firm dollar, U.S. rate hike dent appeal
Gold prices were flat on Friday as
the dollar held close to its recent peak while the likelihood of
more aggressive interest rate hikes by the U.S. Federal Reserve
also weighed on the appeal for non-yielding bullion.
* Spot gold was flat at $1,671.60 per ounce by 0107
GMT. U.S. gold futures ticked 0.1% higher to $1,682.80.
* The dollar index was down 0.1%, but not far from a
20-year peak scaled on Thursday in the wake of a 75-basis-point
rate hike by the U.S. central bank and its hawkish outlook.
* Rising rates dull bullion’s appeal since it yields no
interest. Gold prices have fallen nearly 20% since scaling above
the key $2,000 per ounce mark in March.
* Many central banks raised their interest rates this week,
following the U.S. Federal Reserve in the fight against
inflation, which has been sending shockwaves through financial
markets and the economy.
* Euro zone inflation is set to go higher and price growth
likely to be more persistent than earlier thought, European
Central Bank board member Isabel Schnabel said on Thursday,
defending the ECB’s plans to raise rates further.
* The number of Americans filing new claims for unemployment
benefits increased moderately last week, indicating the labor
market remains tight despite the Fed’s attempt to cool demand
with aggressive rate hikes.
* Holdings of SPDR Gold Trust , the world’s largest
gold-backed exchange-traded fund, fell 0.21% to 950.13 tonnes on
Thursday from 952.16 tonnes on Wednesday.
* Spot silver was flat at $19.64 per ounce, platinum
rose 0.3% to $903.22, while palladium dipped 0.2%
0715 France S&P Global PMI Flash Sept
0730 Germany S&P Global PMI Flash Sept
0800 EU S&P Global PMI Flash Sept
0830 UK Flash PMI Sept
1345 US S&P Global PMI Flash Sept
1800 Federal Reserve Chair Jerome Powell gives opening
remarks at the “Fed Listens: Transitioning to the Post
pandemic Economy” event in Washington
(Reporting by Eileen Soreng in Bengaluru; Editing by Sherry