Gold prices stabilize before the release of important US data

Gold prices stabilized today, after the rise in US Treasury bond yields erased the impact of the dollar’s weakness, with investors awaiting key inflation data to obtain indications about the path of the Federal Reserve (the US central bank) before next week’s meeting.

Gold settled in spot transactions at $4,208.46 per ounce by 03:58 GMT, and is heading for a weekly decline of 0.5 percent.

US gold futures for December delivery fell 0.1 percent to $4,237.70 an ounce.

Ten-year US Treasury bond yields hovered near their highest level in more than two weeks, while the dollar fell and remained near its lowest level in five weeks against a basket of currencies.

“The market is waiting for new catalysts that could come in the form of what the Federal Reserve will do,” said Kunal Shah, head of research at Nirmal Bang Commodities.

Shah explained that high Treasury bond yields also play a role in pressuring gold prices.

Most experts in a poll conducted by Reuters, which included more than 100 economists, expected that the Federal Reserve would reduce the key interest rate by 25 basis points at its meeting, which will be held on December 9 and 10.
Low interest rates usually support non-yielding assets such as gold.

Investors are awaiting the September personal consumption expenditures index, the Federal Reserve’s preferred measure of inflation, which is scheduled to be released at 1500 GMT.

As for other precious metals, silver rose 0.5 percent to $57.40 per ounce after hitting a record high of $58.98 on Wednesday, and is heading for weekly gains.

Platinum fell 0.4 percent to $1,640.25 and is heading to record a weekly loss, while palladium increased 0.9 percent to $1,461.67 and is heading to end the week on a higher note.