NEW YORK (Reuters) - Gold was set to gain for a second week as inflation and geopolitical risks lifted its safe-haven appeal but it slipped amid a broader decline in commodities, while palladium was on course for its best week since November 2020.
Spot gold was down 0.4% at $1,831.60 per ounce as of 13:43 ET. U.S. gold futures settled down 0.6% at $1,831.80.
Silver fell 0.6% to $24.28, but was set for its best week since early May 2021, up about 5.8%.
“The bulls are in control because there is definitely flight-to-safety going into the gold market this week,” said Bob Haberkorn, senior market strategist at RJO Futures.
Market focus is now on the U.S. Federal Reserve’s meeting on Jan. 25-26, and economists polled by Reuters expect the central bank to tighten policy at a much faster pace than thought a month ago to tame persistently high inflation.
The upside momentum of gold could be difficult to maintain ahead of an expected rate hike, which reduces the appeal of holding non-interest-bearing bullion, Standard Chartered analyst Suki Cooper wrote in a note, forecasting prices to average $1,783 per ounce in 2022.