Gold Up, but Investors Still Keep Their Positions Small
Gold was up in Asia on Friday morning. However, it was on track to fall for the fourth week in a row. However, investors kept their positions small ahead of U.S. inflation data to influence the Federal Reserve’s next monetary policy move.
So far this week, the yellow metal has fallen 0.4 percent. The fall happened due to fears that higher inflation and a tightening labor market will prompt the Fed to accelerate asset tapering and raise interest rates sooner than expected.
The consumer price index for the United States is due later in the day. It is the lowest number in more than 52 years, as labor market conditions tightened amid a severe labor shortage. European Central Bank (ECB) policymakers are focusing on a temporary increase in the regular bond purchase scheme to significantly reduce overall debt purchases once a much larger COVID-19-fighting plan ends in March.
Next week, the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan will announce their policy decisions.
Meanwhile, according to Statistics South Africa, South Africa’s gold output fell 3.5 percent year on year in October 2021, compared to a revised 5.6 percent drop in September. It also stated that platinum group metals production would be up 24% in October 2021.
Silver rose 0.2 percent to $21.97 an ounce in other precious metals, but it was on track to fall for the fourth week in a row. Platinum was up 0.3 percent, on its way to its first weekly gain in four weeks, while palladium was down 0.2 percent.
In Asia, on Friday morning, oil was down. Investors profited from the week’s rally. The rally was fueled by growing confidence that the rapid spread of the omicron COVID-19 variant will not impact the global economic recovery and fuel demand.
Brent oil futures were up 0.3 percent to $74.66 per barrel at 3:55 a.m. ET (0855 GMT), while WTI futures were up 0.5 percent to $71.30 per barrel.
Since the discovery of omicron in late November 2021, crude has recovered roughly half of its losses.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.