Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Gold edges up as weaker dollar counters rate jitters

05/14/2021 | 12:23am EDT

* U.S. weekly jobless claims drop to 14-month low

* Palladium heads for second straight weekly decline

* Dollar down 0.1%, still on track for weekly rise

May 14 (Reuters) - Gold prices edged higher on Friday due to a pullback in the dollar, though gains were curbed as data showing a rise in U.S. inflation fanned fears of a sooner-than-expected rate hike.

Spot gold was up 0.2% at $1,829.61 per ounce by 0626 GMT. U.S. gold futures rose 0.2% at $1,827.40.

The metal traded flat for the week.

The dollar index was down 0.1% against its rivals, making gold cheaper for other currency holders.

"Inflation is not necessarily bad for gold, however, it's bad if the central banks start to act on it, and the market is getting a little bit jittery thinking that this could bring forward the U.S. Federal Reserve's taper a little bit," said Stephen Innes, managing partner at SPI Asset Management.

Key U.S. economic readings this week showed a bigger-than-expected rise in consumer prices and weekly jobless claims dropping to a 14-month low, intensifying concerns over rising inflation and prospects of a rise in interest rates.

Higher interest rates increase the opportunity cost of holding bullion.

"Right now we haven't had any inclination that the Fed is about to move anytime soon, I think gold still remains relatively supported," Innes said, adding that strong economic data still remains a key concern.

The U.S. central bank has pledged to keep interest rates low until the economy reaches full employment, and inflation is on track to "moderately" exceed the 2% level for some time.

"We'll need some more clarity in terms of how persistent inflation is. If it turns out to be transitory, yields will remain lower," said Harshal Barot, a senior research consultant for South Asia at Metals Focus.

Investors now await U.S. retail sales data due later in the day.

Elsewhere, palladium gained 1.8% to $2,914.28 per ounce. Silver rose 0.1% to $27.09, while platinum was up 0.9% at $1,216.69. (Reporting by Shreyansi Singh in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)


ę Reuters 2021
Latest news "Economy & Forex"
12:38aGold languishes near $1,800/oz on firm dollar, Fed's taper talk jitters
RE
12:33aU.S. job growth seen strong as technical factors provide a boost
RE
12:33aU.S. Senate to try to finish $1 trillion infrastructure bill on Saturday
RE
12:32aIndia keeps rates on hold as expected; market eyes clues on policy normalisation
RE
12:26aNew Zealand dollar buoyant as rate hike seen just days away
RE
12:22aChinese EV maker Li Auto to raise $1.52 bln in Hong Kong listing - sources
RE
12:21aEMEA MORNING BRIEFING : Stocks to Waver as -2-
DJ
12:21aEMEA MORNING BRIEFING : Stocks to Waver as Investors Await U.S. Jobs Data
DJ
12:20aChina iron ore, steel futures range-bound; to post weekly loss
RE
12:20aBukalapak up 25% after raising $1.5 billion in Indonesia's biggest IPO
RE
Latest news "Economy & Forex"