Gold prices set for best week in five after Fed decision
Gold prices were flat on Friday, but on track for their best week since mid-November as the dollar weakened after the U.S. Federal Reserve decided to withdraw its pandemic-era stimulus, making bullion cheaper for holders of other currencies.
Spot gold was flat at $1,797.47 per ounce, as of 0042 GMT. U.S. gold futures edged up 0.1% to $1,799.80.
· The precious metal was set for its first weekly gain in five, up 0.8%.
· The dollar index (.DXY) hit a one-week low in the previous session, lifting the appeal of the greenback-priced metal.
· The Bank of Japan is set to keep monetary policy ultra-loose on Friday but may dial back emergency pandemic-funding.
Spot silver dipped 0.1% to $22.43 an ounce, but was on track for its first weekly gain since the week ended Nov. 12.
Platinum was up 0.1% to $937.37 and palladium gained 1.1% to $1,749.31.
· China and Russia show solidarity, but likely won’t support each other militarily, analysts say
· Australia’s treasurer says strong jobs growth shows rapid economic recovery is underway
· Japan core consumer inflation seen hitting 20-month high as price pass-through spread: Reuters poll
· Dollar pressured, Asia shares slip as global inflation, Omicron fears sap confidence
Asian stock markets and the U.S. dollar struggled for traction on Friday after a rush of central bank meetings underlined the growing threat posed by a spike in global inflation, while fears about the omicron variant of COVID-19 added to a cautious mood.
The dollar index was trading at 95.999, off nearly 1% since Wednesday's high immediately after the Federal Reserve announced it would accelerate tapering of its emergency bond buying programme and prepare to raise rates more quickly next year.
· Oil prices head for weekly loss on Omicron coronavirus uncertainty
Oil prices dipped on Friday, putting the market on track for a weekly loss, as surging cases of the Omicron coronavirus variant raised fears new curbs may hit fuel demand, while a weaker dollar supported commodity markets broadly.
Brent crude futures fell 74 cents, or 1%, to $74.28 a barrel at 0530 GMT while U.S. West Texas Intermediate (WTI) crude futures dropped 81 cents, or 1.1%, to $71.57 a barrel. Brent is headed for a 1.2% loss this week, while WTI is poised to finish the week down 0.1%.
In Denmark, South Africa and the United Kingdom, the number of new Omicron cases has been doubling every two days. Denmark's Prime Minister Mette Frederiksen on Thursday warned the government may impose further curbs to limit the spread of Omicron.
In the United States, the rapid spread of the Omicron variant has led some companies to pause plans to get workers back into offices.
· SINO-U.S. TENSIONS
Share markets have failed to find a clear direction since the Fed meeting. Overnight the Nasdaq (.IXIC) ended sharply lower as investors moved away from growth stocks like big tech and towards value names, pushing the S&P 500 value index (.IVX) up 0.7%.
Japan's Nikkei (.N225) was 0.85% lower in early trading on Friday after rising 2.13% the day before in its best day in nearly seven weeks.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) lost 0.2%. It is heading for a weekly decline of 1.7%, and at 621.93 is only just above the year low of 615.99 set last week.
Chinese stocks, particularly tech names, have been a major drag, with the Hong Kong benchmark (.HSI) touching its lowest level since September 2020 on Thursday, and falling 0.56% on Friday.
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