SPOT gold remained largely unchanged on Monday (Dec 23) in light trading after gaining on an overall softer US dollar and Treasury yields on Friday, when US economic data hinted at a slowdown in inflation.
Spot gold traded flat at US$2,621.19 per ounce, as at 0057 GMT. US gold futures eased 0.3 per cent to US$2,637.00.
Data on Friday showed monthly inflation in the US slowed in November after little improvement in recent months. The personal consumption expenditures index rose 0.1 per cent last month after an unrevised 0.2 per cent gain in October.
San Francisco Federal Reserve president Mary Daly and two other Fed policymakers on Friday said they felt the central bank would likely resume rate cuts next year but take their time given that the “recalibration phase” was over.
The Fed’s 25-basis-points reduction on Dec 18 and the cautious note struck by its economic projections and expectations of fewer cuts in 2025 pushed gold to its lowest since Nov 18 last week.
The Russian central bank kept key interest rate on hold at 21 per cent on Friday to surprise the market, which had expected a two-percentage-point increase, and said that the recent tightening created conditions for inflation to fall towards its target.
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Higher rates dull non-yielding bullion’s appeal.
Meanwhile, Comex gold speculators cut net long position by 16,251 contracts to 203,937 in the week to Dec 17, data showed on Friday.
In India, gold’s demand remained subdued last week as volatile prices prompted potential buyers to delay purchases, while higher rates in China are expected to potentially offset upcoming seasonal demand.
Spot silver climbed 0.3 per cent to US$29.59 per ounce and platinum rose 0.4 per cent to US$929.83, while palladium eased 0.9 per cent to US$912.21. REUTERS
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