Gold steadies near 2-month high as U.S. inflation data in focus

By Kitco News / November 09, 2021 / www.kitco.com / Article Link

* U.S. CPI data due on Wednesday
* U.S. yields slip, dollar weakens

Nov 9 (Reuters) - Gold prices held near a two-month high on Tuesday, drawing support from lower U.S. yields in the run-up to data that could shed more light on the U.S. inflation picture.

Spot gold inched up 0.05% to $1,825.25 per ounce by 1334 GMT, around $2 shy of its Sept. 7 high. U.S. gold futures for December delivery gained 0.03% at $1,828.60 per ounce.

"In the near-term, the market will be scrutinising economic data to find out if central banks will move quicker or later," said Quantitative Commodity Research analyst Peter Fertig.

"If the market sees that the consumer price index number is above expectations then the argument will certainly go that the Federal Reserve must now hike quicker," Fertig said. But "the Fed is not following a rule book," he added.

Key central banks last week indicated interest rates would remain low in the near term, boosting the appeal of non-yielding gold and helping the metal post its best week since late August.

However, a tight U.S. labour market and the dislocation in global supply chains could result in a high reading for U.S. consumer prices due on Wednesday.

Buoying gold on the day, yields on the 10-year Treasury notes slipped to 1.4584%.

"A rise through $1,825 (in gold) could trigger a technical pattern that could take gold back to the $2,000 zone," Jeffrey Halley, senior market analyst at OANDA, said in a note.

Elsewhere, spot silver fell 0.4% to $24.35 per ounce and platinum fell 0.1% to $1,054.50 per ounce, while palladium rose 0.4% to $2,078.50 per ounce.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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