PRECIOUS-Gold eases as bets for more Fed rate hikes blunt appeal
Shafaq News/ Gold prices ticked lower on Thursday, as the dollar firmed after recent economic data boosted bets that the U.S. Federal Reserve would raise interest rates further to combat high inflation.
FUNDAMENTALS
* Spot gold XAU= was down 0.1% at $1,835.26 per ounce, as of 0048 GMT, after hitting its lowest level since early January in the previous session. U.S. gold futures GCv1 were little changed at $1,845.90.
* The dollar index =USD was up 0.1% after hitting a six-week peak on Wednesday, making greenback-priced gold more expensive for buyers holding other currencies. USD/
* U.S. retail sales rebounded by 3% in January after two straight monthly declines, data showed on Wednesday, pointing to the economy's continued resilience despite higher borrowing costs.
* On Tuesday, data showed the U.S. consumer price index increased 0.5% last month, while in the 12 months through January, the CPI increased 6.4%.
* Interest rate futures markets are now expecting the Fed's target rate to peak above 5.2% in July, from a current range of 4.50% to 4.75%.
* Higher interest rates discourage investment in gold, which does not bear any interest, although the metal is considered a hedge against soaring prices.
* The yield on 10-year Treasury notes US10YT=RR rose to its highest since Jan. 3.
* Euro-zone inflation remains far too high and the European Central Bank will keep raising interest rates to dampen underlying price pressures, ECB President Christine Lagarde said on Wednesday, repeating the bank's most recent policy guidance.
* Spot silver XAG= eased 0.1% to $21.61 per ounce, platinum XPT= was little changed at $915.16 and palladium XPD= was unchanged at $1,464.36.
Source: Reuters
