Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Gold Up, but Poised for Fourth Weekly Fall Ahead of U.S. Inflation Data

Published 10/12/2021, 04:04
© Reuters
GC
-

By Gina Lee

Investing.com – Gold was up on Friday morning in Asia, but set for a fourth consecutive weekly fall. Investors kept moves small, however, ahead of U.S. inflation data that could impact the Federal Reserve's next monetary policy move.

Gold futures inched up 0.10% to $1,778.55 by 10:58 PM ET (3:58 AM GMT).

The yellow metal has fallen 0.4% so far in the week over concerns that higher inflation and a tightening labor market could spur the Fed to quicken its asset tapering and hike interest rates earlier than expected.

The U.S. data, including the consumer price index, is due later in the day. Data released on Thursday showed that 184,000 initial jobless claims were filed throughout the week. This is the lowest number in more than 52 years, as labor market conditions continued to tighten amid an acute worker shortage.

European Central Bank (ECB) policymakers are homing in on a temporary increase in the regular bond purchase scheme that would still significantly reduce overall debt buys once a much larger COVID-19-fighting scheme ends in March 2022, according to Reuters.

The Fed, ECB, Bank of England, and Bank of Japan will hand down their policy decisions next week.

Meanwhile, South Africa's gold output fell 3.5% year-on-year in October 2021 compared to a revised 5.6% fall in September, Statistics South Africa said on Thursday. It also said that platinum group metals production was up 24% year-on-year in October 2021.

In other precious metals, silver edged up 0.2% to $21.97 an ounce but was headed for a fourth consecutive weekly fall. Platinum was up 0.3%, headed for its first weekly rise in four, while palladium edged down 0.2%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.