Gold has hovered below $ 1,800 as investors tried to gauge the rate at which the US central bank would reduce its stimulus. The US consumer price index (CPI) report on Friday will be followed by the Fed’s monetary policy meeting on December 14-15.
Yes the Fed “It goes into a gradual reduction earlier than was announced at the last meeting, so of course the probability of rate hikes is increasing and that would be a negative factor (for gold)”said Peter Fertig, an analyst at Quantitative Commodity Research.
The dollar index was up 0.2%, reducing the appeal of gold to foreign buyers, while appetite for riskier assets increased after BioNTech and Pfizer claimed that three injections of their COVID-19 vaccine can neutralize the omicron variant of the coronavirus.
Among other precious metals, silver was down 0.5% at $ 22.28 an ounce, platinum was down 1.3% at $ 943.65 and palladium was down 1% at $ 1,837.26.
On November 10, when the US inflation data was released, gold reached a five-month high at $ 1,843.31 dollars per ounce. It is important to remember that when faced with the risk of rising inflation, gold is usually the safe haven asset par excellence.
Source From: Ambito
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