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Gold Up, but Poised for Fourth Weekly Fall Ahead of U.S. Inflation Data

Published 10/12/2021, 05:04
© Reuters

By Gina Lee

Investing.com – Gold was up on Friday morning in Asia, but set for a fourth consecutive weekly fall. Investors kept moves small, however, ahead of U.S. inflation data that could impact the Federal Reserve's next monetary policy move.

Gold futures inched up 0.10% to $1,778.55 by 10:58 PM ET (3:58 AM GMT).

The yellow metal has fallen 0.4% so far in the week over concerns that higher inflation and a tightening labor market could spur the Fed to quicken its asset tapering and hike interest rates earlier than expected.

The U.S. data, including the consumer price index, is due later in the day. Data released on Thursday showed that 184,000 initial jobless claims were filed throughout the week. This is the lowest number in more than 52 years, as labor market conditions continued to tighten amid an acute worker shortage.

European Central Bank (ECB) policymakers are homing in on a temporary increase in the regular bond purchase scheme that would still significantly reduce overall debt buys once a much larger COVID-19-fighting scheme ends in March 2022, according to Reuters.

The Fed, ECB, Bank of England, and Bank of Japan will hand down their policy decisions next week.

Meanwhile, South Africa's gold output fell 3.5% year-on-year in October 2021 compared to a revised 5.6% fall in September, Statistics South Africa said on Thursday. It also said that platinum group metals production was up 24% year-on-year in October 2021.

In other precious metals, silver edged up 0.2% to $21.97 an ounce but was headed for a fourth consecutive weekly fall. Platinum was up 0.3%, headed for its first weekly rise in four, while palladium edged down 0.2%.

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