Gold prices were flat on Friday, with cautious investors focusing on key U.S. inflation data and Federal Reserve’s rate hike decision due next week.
Spot gold were little changed at $1,788.56 per ounce, U.S. gold futures were steady at $1,800.60.
Bullion prices were set for a weekly loss of 0.5%, while the dollar index was headed for a week of gains.
Market participants now expect a 93% chance of a 50-basis-point rate hike at the Fed’s final meeting of 2022 scheduled on Dec. 13-14.
Higher interest rates tend to increase the opportunity cost of holding gold as it yields no interest.
The U.S. economy is heading into a short and shallow recession over the coming year, according to economists polled by Reuters.
China’s shift from tough COVID policies, with its promise of driving an economic recovery next year, will instead likely depress growth over the next few months as infections surge, bringing a rebound only later in the year.
Spot silver inched 0.1% lower to $23.05, platinum rose 0.2% to $1,005.10 and palladium lost 0.7% to $1,913.32.
