Gold stalls for cenbank interest rate cues

Gold prices stalled around the $1,750 level on Monday, after marking its worst week in five, as traders awaited further cues on central banks’ interest rates strategy.

FUNDAMENTALS

* Spot gold was flat at $1,749.53 per ounce by 0044 GMT. U.S. gold futures also stalled around $1,751.90.

* Bullion fell 1.2% in the week ending Nov. 18, its worst weekly performance since the one ending Oct. 14, despite scaling a peak since mid-August on Nov. 15.

* Analysts said last week that institutional investors are wary and further gains could be elusive.

* Asian share markets turned hesitant as investors fretted about the economic fallout from fresh COVID-19 restrictions in China, also the top bullion consumer, while bonds and the dollar braced for more updates on U.S. monetary policy.

* Atlanta Federal Reserve President Raphael Bostic said Saturday he is ready to “move away” from three-quarter-point rate hikes at the Fed‘s December meeting and feels the Fed’s target policy rate need to rise no more than another percentage point to tackle inflation.

* The Fed at its December meeting is still expected to raise rates by half a percentage point, a view endorsed by other Fed officials as well recently.

* High interest rates discourage investing in gold, which does not bear any interest.

* Physical gold dealers in India were forced to offer the biggest discounts in four months last week as a jump in domestic prices hit demand, while Chinese premiums fell sharply as buying slowed.

* Spot silver fell 0.2% to $20.88 per ounce, platinum also edged 0.2% lower to $975.21 while palladium was steady around $1,938.37.