NEW YORK: Gold prices traded in a tight range on Tuesday as investors’ attention turned to US inflation data due this week, which could influence the pace at which the Federal Reserve hikes interest rates.
Spot gold was up 0.2% to $1,781.47 per ounce by 10:21 a.m. ET (1521 GMT). US gold futures were near flat at $1,779.90.
“It seems to be more of a consolidation move right now,” said Craig Erlam, senior market analyst at OANDA. He said the market is keeping an eye on the Fed meeting this next week and investors are seeking more clarity on interest rates at a time of uncertainty around Omicron.
Friday’s US Consumer Price Index report could influence the Fed’s monetary policy, in the run up to the Federal Open Market Committee’s meeting on Dec. 14-15.
The Biden-Russia phone call is being watched closely as any major geopolitical uncertainty would support gold, but bullion prices could drop if the Omicron situation does not worsen, said Jim Wyckoff, a senior analyst at Kitco Metals.
US President Joe Biden and Russian President Vladimir Putin began virtual talks on Ukraine and other subjects on Tuesday, Russian state television reported, amid Western fears that Moscow plans to attack its southern neighbour.
Global stocks rose on the day as concerns around the Omicron coronavirus variant eased after top US infectious disease official, Anthony Fauci, told CNN “it does not look like there’s a great degree of severity” so far.
Capping gold’s gains, the dollar rose, raising bullion’s cost for overseas buyers. Platinum gained 1.5% to $951.65 an ounce, palladium added 0.1% to $1,856.43 and silver rose 0.4% to $22.38.
Average prices of gold, silver and platinum next year will be almost the same as in 2021, while palladium will fall, consultants Metals Focus said, predicting the oversupply of all the metals except silver.
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