Gold prices were virtually unchanged during early Asian hours on Friday, as traders awaited economic data due later in the day to gauge the Federal Reserve’s rate hike stance.
Spot gold was little changed at $1,793.22 U.S. per ounce early Friday. U.S. gold futures rose 0.3% to $1,801.20.
Investors’ attention turns to U.S. personal consumption expenditure data later in the day, for cues on inflation.
Bullion prices dropped more than 1% on Thursday after U.S. economic data showed the country’s economy rebounded faster than previously estimated, boosting the dollar and potentially setting the Fed on a keener path to fight inflation.
New claims for unemployment benefits increased less than expected last week in the United States, while the economy rebounded faster in the third quarter, rising 3.2% against the previously estimated 2.9%.
Although gold is considered an inflation hedge, rising interest rates increase the opportunity cost of holding bullion since it pays no interest.
Spot silver fell 0.1% to $23.55 U.S., platinum gained 0.1% to $978.76 U.S. and palladium rose 0.2% to $1,683.50 U.S.
