Gold inches higher as investors focus on US inflation data

Investors look forward to U.S. inflation data after hawkish remarks from Federal Reserve Chair Jerome Powell pushed bullion to a more than three-week low last week.

Spot gold was up 0.1% at $1,939.19 per ounce at the last count. | Image: Reuters

Gold prices edged higher on Monday as investors look forward to U.S. inflation data after hawkish remarks from Federal Reserve Chair Jerome Powell pushed bullion to a more than three-week low last week.

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Spot gold was up 0.1% at $1,939.19 per ounce, as of 0102 GMT, after slipping to its lowest since Oct. 18 on Friday. U.S. gold futures gained 0.3% to $1,943.40.

Gold fell 2.8% last week to register its worst week in more than a month as Powell’s hawkish remarks pushed back any notion about interest rate cuts.

Higher interest rates raise the opportunity cost of holding gold.

U.S. consumer sentiment fell for a fourth straight month in November, and households’ expectations for inflation rose again, a survey showed on Friday.

Focus this week will be on U.S. consumer prices index (CPI) data due on Tuesday that could influence the Fed’s interest rate outlook.

Core CPI month-over-month is expected to have risen 0.3% in October, with a year-over-year increase of 4.1%, a Reuters poll showed. Both estimated gains are the same as in September.

The dollar was up 0.1% against its rivals after hitting a one-week high in the previous session, making bullion less attractive for other currency holders.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.10% to 868.14 tonnes on Friday from 867.28 tonnes on Thursday.

Gold demand improved in India last week due to a key festival, but early reports suggested purchases were slightly lower compared with last year as higher prices put off some customers.

Spot silver rose 0.3% to $22.68 per ounce, while platinum was flat at $859.66. Palladium gained 0.8% to $999.71 per ounce, but was holding near its lowest level since 2018.

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