Gold was flat on Friday but was set for its biggest weekly jump in six months, as high U.S. consumer prices drove interest in the metal as an inflation hedge.
Spot gold was reportedly steady at $1,860.81 U.S. per ounce, 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.
Spot silver rose 0.1% to $25.25 U.S. per ounce and was en route to its best week in three.
Platinum was little changed at $1,085.52 U.S. and was on course for its biggest weekly rise in a month. Palladium rose 0.2% to $2,063.60 U.S.
