Gold drops after its best session in a month; market attentive to inflation data

By Bharat Gautam

Jan 12 (Reuters) – Gold prices fell on Wednesday, ahead of inflation data from the United States that could provide further guidance on the Federal Reserve’s monetary policy, following comments from the Fed’s chairman. they boosted the metal on the eve.

* At 1055 GMT, spot gold fell 0.27% to $ 1,816.8 an ounce, after posting its biggest daily percentage increase since mid-December the day before. Gold futures in the United States were stable at $ 1,817.70.

* The dollar recovered slightly, a factor that weighed on gold, but «we will have more direction after the release of the US consumer price index data», and if they meet expectations, gold will remain trapped in recent ranges, said Ricardo Evangelista, senior analyst at ActivTrades.

* Additionally, «with fears of the omicron impact failing, gold could lose some appeal as a safe haven asset,» Evangelista added.

* In another aspect that put pressure on gold, European equities rose, in line with positive signals from Wall Street futures, after Fed Chairman Jerome Powell sounded less inclined to embrace an aggressive cycle of raises. interest rates and dispel market fears of a sharp withdrawal of monetary support.

* In other precious metals, silver was down 0.3% at $ 22.70 an ounce; platinum was stable at $ 970.55; and palladium was up 0.2% at $ 1,924.57.

(Edited in Spanish by Marion Giraldo)