Gold Falls for Second Day, US Inflation Subdued Amid Oil Surge
Gold prices weakened for a second straight day after US inflation data dimmed the prospect of an interest rate cut, while the Middle East conflict pushed oil prices higher and rekindled concerns about future inflation. Gold briefly fell as much as 1% after weakening 0.3% in the previous session, as the dollar index strengthened by 0.3% and markets reduced the Fed's room for near-term policy easing.
Pressure on gold also came from liquidity dynamics. When volatility increases, gold often becomes a source of funds to cover portfolio needs, although its safe-haven function remains intact. In energy markets, Brent re-surfaced above US$100 per barrel on Thursday, with concerns about a prolonged conflict seen as outweighing the planned release of the largest emergency reserves by developed nations; the US is said to release 172 million barrels from its emergency reserves. Flows into gold ETFs have reportedly declined since the outbreak of the war, although inflows resumed on Tuesday after the largest weekly sell-off in more than two years.
At 12:10 p.m. in Singapore, spot gold fell 0.5% to US$5,151.82 per ounce. Silver fell 1% to US$84.89, platinum weakened, while palladium rose, and the Bloomberg Dollar Spot Index rose 0.2%. (alg)
Source: Newsmaker.id
