Gold prices were flat on Friday,
pressured by an uptick in the US dollar and fears over
aggressive rate hikes, although heightened slowdown worries kept
safe-haven bullion on track for its first weekly gain in six.
* Spot gold held its ground at $1,717 per ounce, as
of 0114 GMT, after rising more than 1% in the previous session.
Bullion gained 0.6% so far this week.
* US gold futures were up 0.1% at $1,715.50 per
* The dollar rose 0.2% against its rivals, making
greenback-priced bullion more expensive for buyers holding other
* The European Central Bank raised interest rates by more
than expected on Thursday as concerns about runaway inflation
Trumped worries about growth.
* Although gold is seen as a hedge against inflation, rising
Interest rates increase the opportunity cost of holding bullion.
* Investors’ focus now shifts to US Federal Reserve policy
meeting due next week where policymakers are expected to raise
interest rates by 75 basis points.
* The number of Americans enrolling for unemployment
benefits rose for a third straight week last week, while factory
activity slumped this month, the newest indications the US
economy is slowing under the weight of rising interest rates and
* Japan’s core consumer inflation remained above the central
bank’s 2% target for a third straight month in June, as the
The economy faced pressure from high global raw material prices.
* Spot silver was down 0.4% at $18.78 per ounce,
platinum gained 0.3% to $874.50, and palladium
edged 0.1% lower to $1,891.20.
0030 Japan JaibunBK Mfg PMI Flash SA July
0600 UK Retail Sales MM, YY June
0600 UK Retail Sales Ex-Fuel MM June
0715 France S&P Global Mfg, Serv, Comp Flash PMIs July
0730 Germany S&P Global Mfg, Serv, Comp Flash PMIs July
0800 EU S&P Global Mfg, Serv, Comp Flash PMIs July
0830 UK Flash Comp, Mfg, Serv PMIs July
1345 US S&P Global Mfg, Serv, Comp Flash
(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry