Gold prices flat ahead of key US inflation data

Gold prices flat ahead of key US inflation data

On Friday, gold prices were flat, with cautious investors focused on key US inflation data and Federal Reserve's rate hike decision due next week.

Spot gold was little changed at $1,788. 56 per ounce, as of 0038 GMT. The US gold futures GCv 1 were steady at $1,800. Bullion prices were set for a weekly loss of 0.5%, while the dollar index was headed for a week of gains.

Market participants now expect a 93% chance of a 50 basis point rate hike at the Fed's final meeting of 2022 on December 13 -- 14.

Higher interest rates increase the chance of holding gold as it yields no interest.

The US Consumer Price Index CPI report will be released on December 13th, and investors will be watching out for the November US Consumer Price Index CPI report.

The number of Americans filing new claims for unemployment benefits increased moderately last week, pointing to a still tight labor market despite growing fears of a recession.

The US economy is going to go into a short and shallow recession over the next year, according to economists polled by Reuters.

China's shift from tough COVID policies, with its promise of an economic recovery next year, will likely depress growth over the next few months as infections surge, leading to a rebound later in the year, according to economists.

Spot silver fell 0.1% to $23.05, while platinum rose 0.2% to $1,005. 10 and palladium lost 0.7% to $1,913.