FUNDAMENTALS
* Spot gold was steady at $1,860.81 per ounce by 0110 GMT, after leaping to a five-month peak on Wednesday. U.S. gold futures edged down 0.1% to $1,862.20.
* The metal is on track for its biggest weekly gain since May 7, rising 2.3% so far.
* Inflation pushed more broadly through the economy in October again challenging the Federal Reserve’s outlook for only “transitory” price increases, offsetting recent wage hikes in a blow to consumers.
* The sharp rise in inflation also prompted investors to boost bets that the Fed will raise interest rates sooner than expected.
* Gold has benefited from easy monetary policy introduced to spur economic growth during the pandemic, but any hike in interest rates should reduce the non-interest bearing’s metal’s appeal as it raises its opportunity cost.
* Euro zone inflation expectations are at a risk of continuing to overshoot the European Central Bank’s 2% target next year, according to a Reuters poll of economists.
* Britain’s economic recovery from the coronavirus outbreak lagged behind that of other rich nations in the July-September period, according to official data on Thursday which underscored the interest rate dilemma facing the Bank of England.
* The dollar index soared to its highest since July 2020, pressuring bullion by increasing its cost to buyers holding other currencies. [USD/]
* Spot silver rose 0.1% to $25.25 per ounce and was en route to its best week in three.
* Platinum was little changed at $1,085.52 and was on course for its biggest weekly rise in a month. Palladium rose 0.2% to $2,063.60.
