Gold nudges higher as weaker dollar lends support

Gold prices inched up on Thursday, extending gains into a third session as a softer

dollar

made the metal cheaper for buyers holding other currencies.

FUNDAMENTALS

* Spot gold rose 0.2% to $1,784.96 per ounce by 0146 GMT. U.S. gold futures were little changed at $1,784.60.

* Bullion prices have traded between $1,759 and $1,788 this week. A weaker dollar on Thursday kept the metal close to the higher end of this range.

* Two U.S. Federal Reserve officials said on Wednesday while the central bank should begin winding down its stimulus measures, it was too soon for interest rate hikes.

* The Bank of England will be the first major central bank to raise interest rates in the post-pandemic cycle but economists polled by Reuters think the first hike will not come until early next year, later than markets are pricing in.

* Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion which pays no interest.

* Russia’s gold reserves stood at 73.9 million troy ounces as of the start of October, the central bank said on Wednesday.

* Spot silver rose 0.3% to $24.33 an ounce, while platinum gained 0.1% to $1,051.12 and palladium fell 0.3% to $2,066.53.

* Russia’s Nornickel, the world’s largest palladium producer, said its palladium production in the third quarter increased 9% to 598,000 troy ounces, while platinum output increased 8% to 145,000 troy ounces.

DATA/EVENTS (GMT) 1230 US Initial Jobless Claims Weekly 1230 US Philly Fed Business Indx Oct 1400 EU Consumer Confidence Flash Oct 1400 US Existing Home Sales Sept