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U.S. CPI data due on Feb. 14
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Silver set for fourth straight weekly loss
(Adds comments and updates prices)
By Ashitha Shivaprasad
Feb 10 (Reuters) - Gold prices were nearly flat on
Friday, while market focus switched to next week's U.S.
inflation data that is likely to provide clarity on the Federal
Reserve's monetary policy trajectory.
Spot gold XAU= was little changed at $1,862.74 per
ounce, as of 1209 GMT, after hitting its lowest level since Jan.
6 earlier in the session. For the week, bullion was down 0.1%.
U.S. gold futures fell 0.1% to $1,875.90.
Investors are awaiting the U.S. consumer price data due on Feb. 14.
"There is still uncertainty on the Federal Reserve's path and gold's move will depend on what the Fed will do next," said ActivTrades senior analyst Ricardo Evangelista. "If core inflation is lower than expectations, then it will have a negative impact on the dollar and help gold. But, if inflation doesn't come down, then Fed will continue rate hikes, which will penalize gold."
The dollar inched 0.2% higher against its rivals. A stronger dollar tends to make greenback-priced gold less affordable for buyers holding other currencies. Although gold is considered a hedge against inflation, higher interest rates tend to increase the opportunity cost of holding the non-yielding asset. Richmond Fed President Thomas Barkin said on Thursday that tight monetary policy is "unequivocally" slowing the U.S. economy, allowing the Fed to move "more deliberately" with any further interest rate increases.
"We expect rising gold prices in the second half of the year to pull up the silver price too," Commerzbank analysts said in a note.
Among other precious metals, spot silver rose
0.5% to $22.08 per ounce, but was headed for a fourth straight
weekly drop.
Palladium shed 2.1% to $1,595.24. Platinum was up 0.3% at $956.98 but was set for a fifth consecutive
weekly fall.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by
Sherry Jacob-Phillips and Rashmi Aich)
