Gold prices stable ahead of US inflation data release

Gold prices changed little on November 10 morning, Report informs referring to the auction data.

Investors are cautiously expecting inflation statistics in the US, which may affect the Fed’s policy.

The price of December futures for gold on the New York Comex exchange fell by $2.15, or 0.13%, to $1,711.55 per troy ounce. December silver futures fell 0.83% to $21.15 an ounce.

Later in the day, traders are looking forward to the release of US annual inflation data for October. Analysts expect inflation to slow down to 8% in October from 8.2% a month earlier. Thus, inflation may show a slowdown for the fourth month in a row. At the same time, it remains well above the Fed’s target level of 2%.

The data may influence the future policy of the Fed. Since the beginning of the year, the regulator has raised the rate for 6 times in a row to fight inflation.

Markets are waiting for further tightening of the Fed’s monetary policy, but allow a slowdown in the pace of rate hikes. According to the CME Group, 57% of experts expect a 50 bps increase in December, and 43% of experts expect growth again by 75 bps.

Gold, as a rule, reacts to signals from the Fed, as this is reflected in the dollar, to which the value of the precious metal is sensitive. Traditionally, a rate hike has supported the dollar, making gold less affordable to buy in another currency. At the same time, expectations of a slowdown in the Fed’s rate hike may contain the strengthening of the dollar, which will be positive for gold.