(Reuters) – Gold prices were little changed on Friday, but the metal was headed for a second straight weekly drop as a stronger dollar and U.S. Federal Reserve’s hawkish policy stance clouded outlook for the non-yielding bullion.
FUNDAMENTALS
* Spot gold rose 0.1% at $1,631.33 per ounce, as of 0043 GMT, but it was down 0.6% for the week so far.
* U.S. gold futures rose 0.2% to $1,633.70.
* The dollar index was set for its biggest weekly gain since Sept. 23.
* On Wednesday, the Fed raised interest rates by 75 basis points and Chair Jerome Powell vowed to “keep at” their battle to beat down inflation.
* Gold is considered an inflation hedge, but rising interest rates dent the non-yielding asset’s appeal.
* Investors’ focus now shifts to the U.S. non-farm payrolls data for October due at 1230 GMT, which could offer further cues on the Fed’s rate-hike plan.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.82 percent to 911.59 tonnes on Thursday from 919.12 tonnes on Wednesday.
* Meanwhile, the Bank of England raised interest rates by the most since 1989 on Thursday but warned investors that the risk of Britain’s longest recession in at least a century means borrowing costs are likely to rise less than they expect.
* Spot silver was flat at $19.46, platinum fell 0.1% to $917.84 and palladium was steady at $1,800.81.
DATA/EVENTS (GMT)
0030 Japan JibunBK Comp Op Final SA Oct
0030 Japan JibunBK SVC PMI Final SA Oct
0030 Australia Retail Sales Q3
0700 Germany Industrial Orders MM Sept
0700 Germany Manufacturing O/P Cur Prices SA Sept
0700 Germany Consumer Goods SA Sept
0850 France S&P Global Serv, Comp PMIs Oct
0855 Germany S&P Global Services PMI Oct
0855 Germany S&P Global Comp Final PMI Oct
0900 EU S&P Global Serv, Comp Final PMIs Oct
1230 US Non-Farm Payrolls Oct
1230 US Unemployment Rate Oct
(Reporting by Ashitha Shivaprasad in Bengaluru; editing by Uttaresh.V)
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