GOLD prices were flat on Wednesday (Jan 8), pressured by higher yields and a stronger dollar after US data suggested the Federal Reserve might slow the pace of its rate cuts this year.
Spot gold held its ground at US$2,650.62 per ounce, as at 0023 GMT, after rising as much as 1 per cent in the previous session. US gold futures were unchanged at US$2,665.
The US dollar strengthened and benchmark 10-year Treasury yields hit an eight-month high after better-than-expected data on Tuesday pointed to a strong economy.
US job openings in November grew to 8.1 million, exceeding forecasts for a 7.7 million jump, and higher than October’s numbers of 7.8 million.
The market now awaits US jobs report on Friday for more clues on the Fed’s policy path. ADP employment numbers and the minutes from the Fed’s December meeting, due later in the day, are also on investors’ radar.
The Fed’s latest projections in December implied a shift to a more cautious pace of rate cuts this year, with the majority of the policymakers expressing concern that inflation could reignite.
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Bullion is considered a hedge against inflation, but high rates reduce the non-yielding asset’s appeal.
Top consumer China added gold to its reserves in December for a second straight month, official data by the People’s Bank of China (PBOC) showed on Tuesday.
Elsewhere, the Perth Mint’s gold product sales fell 45 per cent in December from a month earlier, while silver sales jumped to their highest point in more than one year.
Spot silver shed 0.5 per cent to US$30.15 per ounce, platinum was flat at US$950.85 and palladium edged 0.1 per cent lower to US$924.92. REUTERS
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