Gold Down, But Heads for Biggest Weekly Jump in Six Months

Date: 12 November 2021 - 22:09

News ID: ۹۶۴۹۷

NEW YORK (Investing.com) – Gold was down on Friday morning in Asia, but was set for its biggest weekly gain in six months as continuing concerns about high inflation in the U.S. capped some losses the yellow metal.
Gold futures were down 0.32% to $1,857.95 by 10:41 PM ET (3:41 AM GMT), but were on track for their biggest weekly gain since May 7. The dollar, which normally moves inversely to gold, inched up on Friday and hit its highest since July 2020.
Inflation soared to three-decade highs in October in the U.S., with the consumer price index (CPI) growing 6.2% year-on-year and 0.9% month-on-month. The core CPI rose 4.6% year-on-year and 0.6% month-on-month.
Rising inflation also challenged the Federal Reserve’s insistence that inflationary pressures will be temporary and boosted bets that the central bank will hike interest rates earlier than expected.
Although easy monetary policy has given gold a boost thus far, its appeal will be diminished if central banks start hiking interest rates.
In Europe, data released on Thursday showed that the U.K.’s third-quarter GDP rose 1.3% quarter-on-quarter. The GDP rose 6.6% year-on-year and 0.6% month-on-month. The slower growth zeroed the focus on the Bank of England’s next move vis-a-vis interest rate hikes. The BOE kept its latest interest rate steady at 0.10% in a surprise move.
Meanwhile, Eurozone could continue to exceed the European Central Bank’s 2% target in 2022 according to Reuters economists.