GOLD prices were poised for a weekly fall on Friday (Dec 20) after the Federal Reserve’s verdict on its monetary policy-easing cycle noted a slowdown in cuts, while market focus shifted to the US Personal Consumption Expenditure (PCE) data due later in the day.
Spot gold was flat at US$2,594.59 per ounce, as at 0034 GMT, and has lost more than 2 per cent this week.
US gold futures were also steady at US$2,609.30.
Investors now await the core PCE data, the Fed’s preferred inflation measure, for further clues on the US economic outlook.
The Fed cut rates by 25 basis points and the cautious note struck by its economic projections and expected slowdown of rate cuts pushed gold on Wednesday to its lowest point since Nov 18.
Data showed on Thursday that the US economy grew faster than expected in the third quarter, while jobless claims also slipped more than anticipated, reinforcing expectations that the central bank will take a cautious approach to policy easing in the coming year.
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Bank of England policymakers voted 6-3 to keep interest rates on hold on Thursday. A Reuters poll showed that top consumer China is widely expected to leave its benchmark lending rates unchanged later on Friday.
Higher rates dull the appeal of the non-yielding gold.
Spot silver steady at US$29.02 per ounce, platinum was down 0.4 per cent to US$919.70 and palladium eased 0.2 per cent to US$904.21.
All three metals were poised for weekly losses. REUTERS
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