Gold dipped in Asia after jumping to an eight-month high in the previous session amid a darkening economic outlook in the US and Europe.
(Bloomberg) — Gold dipped in Asia after jumping to an eight-month high in the previous session amid a darkening economic outlook in the US and Europe.
Federal Reserve Vice Chair Lael Brainard, considered a dove, said rates in the US will need to stay high for a period to cool inflation, while European Central Bank President Christine Lagarde vowed no let-up in efforts to return price gains to within the 2% target. In Japan, inflation hit 4% for the first time in more than four decades.
Bullion has been rallying since early November on signs the Fed was turning less hawkish, and as the dollar and Treasury yields fell. It may benefit from haven demand as the outlook for the US and European economies darkens, even as China is expected to rebound later this year.
Spot gold declined 0.4% to $1,924.23 an ounce as of 1:14 p.m. in Singapore after jumping 1.5% on Thursday, and was still on track for its fifth consecutive weekly gain. The Bloomberg Dollar Spot Index edged 0.1% higher. Silver was flat, while platinum and palladium fell.
Economic data from the US this week has painted a mixed picture. Jobless claims unexpectedly fell to the lowest since September, according to data released Thursday, underscoring the strength of the labor market. That came after figures earlier in the week that showed drops in retail sales and producer-price inflation.
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