Gold holds recent gains as markets await GDP, inflation readings By

© Reuters. By Ambar Warrick– Gold prices rose on Thursday as fears of a 2023 recession spurred some safe haven plays into the yellow metal, with focus now turning to key readings on US economic growth and inflation due this week. Bullion prices rallied this week against a weaker , which was in part dented by a less dovish than expected stance from the . The greenback was also dented by growing bets that US inflation has peaked, which could invite a slower pace of rate hikes by the Federal Reserve. rose 0.2% to $1,818.58 an ounce, while rose 0.1% to $1,827.45 an ounce by 20:08 ET (01:08 GMT). The yellow metal was trading up 1.5% for the week, and was close to a five-month high. Markets are now awaiting revised US data for the third quarter. A preliminary reading showed that the economy grew a better-than-expected 2.9% in the September quarter, with analysts forecasting the figure to remain the same in its first revision due later in the day. Focus this week is squarely on the US, which is the Federal Reserve’s preferred inflation gauge. The is expected to have eased further in November from the prior month. But the index still remains well above the Fed’s annual target range, indicating that the central bank still needs to tighten policy further to curb. The prospect of rising interest rates in developed markets is likely to keep gold prices subdued in the coming months, with the , and the also sending hawkish messages. Other precious metals rose on Thursday, although their outlook also remains cloudy. Focus this week is also on from Japan, especially after the BOJ somewhat tightened policy after nearly a decade of accommodative measures. Among industrial metals, copper prices surged on more signs of an economic reopening in China, even as the country grapples with a massive spike in COVID-19 cases. rose 0.7% to $3.8425 a pound and were set to gain over 2% this week. But prices of the red metal are still trading lower for the year, with their outlook remaining uncertain in the face of rising interest rates and a potential recession.

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