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Gold flat as traders await US inflation data; Spot gold hits $1,876.93 per ounce

Gold flat as traders await US inflation data; Spot gold hits $1,876.93 per ounce

Although gold is seen as an inflation hedge, rising rates increase the opportunity cost of holding bullion.

Spot gold held its ground at $1,876.93 per ounce, as of 0011 GMT. US gold futures GCv1 rose 0.1% to $1,879.80. Spot gold held its ground at $1,876.93 per ounce, as of 0011 GMT. US gold futures GCv1 rose 0.1% to $1,879.80.

Gold prices were flat during early Asian hours on Thursday, as traders awaited key US inflation data that could influence the Federal Reserve's policy path.

FUNDAMENTALS

* Spot gold held its ground at $1,876.93 per ounce, as of 0011 GMT. US gold futures GCv1 rose 0.1% to $1,879.80.

* Investors' focus remains on the US consumer price index report due at 1330 GMT.

* Boston Federal Reserve bank leader Susan Collins said she is inclined to raise interest rates by a quarter percentage point at the central bank's upcoming policy meeting, the New York Times reported on Wednesday.

* Although gold is seen as an inflation hedge, rising rates increase the opportunity cost of holding bullion.

* Barclays said it sees a mild recession in the US from the second quarter and lasting through the fourth, citing declining activity in the manufacturing sector.

* The European Central Bank expects to continue raising interest rates "significantly" at future meetings, at a sustained pace, ECB policymaker Pablo Hernandez de Cos said on Wednesday.

* Indian gold refiners have nearly stopped imports of gold ore, a semi-pure alloy, as grey market operators offer hefty discounts to market rates and cut into their slender margins, making business a losing proposition, industry officials say.

* Spot silver edged up 0.1% to $23.44, platinum fell 0.1% to $1,069.47 and palladium slipped 0.1% to $1,772.48.

Published on: Jan 12, 2023, 7:20 AM IST
Posted by: Mehak Agarwal, Jan 12, 2023, 7:15 AM IST