Gold traded flat on Friday (Nov 22) and was poised for a weekly decline as markets awaited key US economic data, which are expected to shape the Federal Reserve’s monetary policy outlook and influence bullion demand.
Spot gold fell 0.1 per cent to US$2,637.71 per ounce, as at 0006 GMT. Bullion was down nearly 3 per cent so far this week.
US gold futures edged 0.1 per cent lower to US$2,636.80.
Key US data scheduled for next week includes job openings, the ADP employment report and the employment report, all of which could provide insights into the Fed’s rate cut trajectory.
Trading was thin with US markets closed on Thursday for the Thanksgiving holiday.
Meanwhile, data on Wednesday showed progress in lowering US inflation appears to have stalled in the past months, suggesting the Fed may proceed cautiously with further cuts.
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According to the CME Group’s FedWatch Tool, markets currently see a 62.8 per cent chance of a 25-basis-points reduction by the Fed in December.
Geopolitically, the Israeli military said its air force struck a facility used by Hezbollah to store mid-range rockets in southern Lebanon on Thursday after both sides accused each other of breaching a ceasefire that aims to halt over a year of fighting.
Additionally, Russia on Thursday unleashed its second big attack on Ukraine’s energy infrastructure this month, triggering deep power cuts across the country.
Gold is often regarded as a safe-haven investment during periods of economic or geopolitical instability, including trade wars.
Spot silver shed 0.1 per cent to US$30.23 per ounce, platinum rose 0.1 per cent to US$932.55 and palladium was steady at US$975.68. REUTERS
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