Precious gold rises as traders eye US inflation data, Federal Reserve meets – News Couple

Precious gold rises as traders eye US inflation data, Federal Reserve meets

(prices for updates)

* Global stocks rise as Omicron fears fade

* The dollar is hovering near its highest level in a week

*The Federal Open Market Committee will meet on December 14-15

(Reuters) – Gold prices rose on Tuesday as investor attention turned to US inflation data due this week, which could influence the pace of interest rate hikes by the Federal Reserve.

Spot gold was up 0.2% at $1,782.39 an ounce by 01:40 PM ET (1840 GMT). US gold futures rose 0.3% at 1,784.70.

“It looks like it’s more of a consolidation move right now,” said Craig Erlam, chief market analyst at OANDA. He said the market is watching the Fed meeting next week and investors are seeking more clarity on interest rates at a time of uncertainty over the coronavirus Omicron variable.

Friday’s US Consumer Price Index report may influence the Federal Reserve’s monetary policy in the run-up to the December 14-15 FOMC meeting.

Jim Wyckoff, chief analyst at Kitco Metals, said the phone call between Biden and Russia is being closely watched because any major geopolitical uncertainty will support gold, but bullion prices could fall if the Omicron situation does not worsen.

US President Joe Biden told Russian President Vladimir Putin on Tuesday that the West was concerned that Russia would invade Ukraine and warned of “economic and other strong measures” as punishment if Moscow starts a military conflict.

Global stocks rose today as concerns about the Omicron variant eased after US infectious disease official Anthony Fauci told CNN “there doesn’t seem to be a significant degree of risk” yet.

Capping gold’s gains, the dollar rose, raising the cost of bullion for overseas buyers.

Platinum rose 1.7% to $953.06 an ounce, palladium rose 0.5% to $1,845.45, and silver rose 0.6% to $22.49.

Metals Focus advisers said, that the average prices of gold, silver and platinum next year will be approximately the same in 2021, while palladium will decline, and expected an increase in the supply of all metals except silver. (Reporting by Bharat Govind Gautam and Asha Cestla in Bengaluru; Additional reporting by Ashitha Shivaprasad; Editing by Amy Karen Daniel and Ramakrishnan M.)

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