The gold price continues to consolidate ahead, with gold futures firmer last night (December 8) while the dollar is easing. The markets are waiting for the US CPI data for November, including meetings of the three largest central banks in the world.
- Gold futures were up 80 cents, or 0.04%, at $1,785.50 per ounce.
- Silver was down 9.1 cents, or 0.4%, at $22.432 an ounce.
- Platinum was up $5.9, or 0.62%, at $955.9 per ounce.
- The palladium futures were up $5.40, or 0.3%, at $1,852.40 an ounce.
A weak dollar index continues to draw traders into the gold market driving gold futures. The index, which measures the dollar’s movements against six other major currencies in a basket of currencies, fell 0.51% to 95.8905.
However, gold contracts could only adjust in a narrow range. Concerns about the new COVID variant Omicron seem to have faded somewhat as reports suggest that the disease progression is milder than other variants. As a result, many feel safe and invested instead in risky assets with seemingly higher returns, such as the stock market.
As markets look ahead to Friday’s release of the U.S. Consumer Price Index (CPI). If it turns out higher than analysts expect, this will be a factor prompting the U.S. Federal Reserve (Fed) to rethink its interest rate policy.
Including the monetary policy meeting of the world’s three largest central banks. The Fed will hold its meeting on December 14 and 15, while the ECB and BoE will meet on December 16.
The Spot Market is Open
Thursday, December 9, 2021