Gold prices edged higher on Friday but were headed for a fourth straight weekly fall as investors kept to the sidelines ahead of key U.S. inflation data that could influence the Federal Reserve’s next policy move.
Spot gold rose 0.1% to $1,776.23 U.S. per ounce early Friday morning. U.S. gold futures gained 0.1% to $1,778.60.
Bullion prices have fallen 0.4% so far in the week as investors worried higher inflation and a tightening labour market could prompt the Fed to accelerate the pace of its asset purchase reductions.
Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of bullion, which bears no interest.
South Africa’s gold output was down 3.5% year-on-year in October compared to a revised 5.6% fall in September, Statistics South Africa said on Thursday. Platinum group metals production was up 24% year-on-year in October.
Spot silver rose 0.2% to $21.97 U.S. an ounce but was headed for a fourth consecutive weekly drop.
Platinum climbed 0.3% to $937.07 U.S., en route to its first weekly rise in four. Palladium fell 0.2% to $1,809.40 U.S..
