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    Gold holds near one-week high after U.S. inflation data

    Synopsis

    Gold prices on Thursday held near a one-week high hit in the previous session, as the U.S. dollar and Treasury yields retreated after inflation data came in line with expectations and reiterated the need for a quicker interest rate hike. Spot gold was flat at $1,824.55 per ounce by 0109 GMT. U.S. gold futures were down 0.2% to $1,824.00.

    GoldiStock
    Spot silver was up 0.1% at $23.14 an ounce, platinum climbed 0.1% to $978.09, and palladium shed 0.2% to $1,906.48.
    Gold prices on Thursday held near a one-week high hit in the previous session, as the U.S. dollar and Treasury yields retreated after inflation data came in line with expectations and reiterated the need for a quicker interest rate hike.

    FUNDAMENTALS

    * Spot gold was flat at $1,824.55 per ounce by 0109 GMT. U.S. gold futures were down 0.2% to $1,824.00.

    * The consumer price index increased 0.5% last month, just above the 0.4% expectation, the Labor Department said on Wednesday. The CPI surged 7.0% in 2021, the biggest year-on-year increase since June 1982 but in line with the forecast of economists polled by Reuters.

    * Following the inflation reading, the dollar fell to a two-month low, making gold more attractive for overseas investors.

    * U.S. benchmark 10-year yields also slipped, moving away from two-year highs hit earlier in the week. Lower yields reduce the opportunity cost of holding non-interest bearing gold.

    * Investors and analysts now expect the U.S. central bank's policy-setting Federal Open Market Committee (FOMC) to raise its benchmark overnight interest rate from the current near-zero level at its March meeting, and continue with three more quarter-percentage-point increases over the year.

    * Gold is considered an inflationary hedge, but the metal is highly sensitive to rising U.S. interest rates which increase the opportunity cost of holding non-yielding bullion.

    * Zimbabwe's gold production rose by 55.5% in 2021, central bank data showed on Wednesday, as government moves to incentivise miners bore fruit.

    * Spot silver was up 0.1% at $23.14 an ounce, platinum climbed 0.1% to $978.09, and palladium shed 0.2% to $1,906.48.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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