Gold poised for fourth weekly fall as investors hone in on U.S. inflation

Gold prices edged higher on Friday but were headed for a fourth straight weekly fall as investors kept to the sidelines ahead of key U.S. inflation data that could influence the Federal Reserve’s next policy move

Spot gold rose 0.1% to $1,776.23 per ounce by 0057 GMT. U.S. gold futures gained 0.1% to $1,778.60

Bullion prices have fallen 0.4% so far in the week as investors worried higher inflation and a tightening labor market could prompt the Fed to accelerate the pace of its asset purchase reductions

Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of bullion, which bears no interest

The closely watched U.S. inflation report, due at 1330 GMT, is expected to show the Consumer Price Index likely rose 0.7% in November from the previous month, according to a Reuters poll

U.S. jobless claims dropped to their lowest level in more than 52 years last week as labor market conditions continued to tighten amid an acute shortage of workers

European Central Bank policymakers are homing in on a temporary increase in the regular bond purchase scheme that would still significantly reduce overall debt buys once a much larger pandemic-fighting scheme ends in March, sources told Reuters

South Africa’s gold output was down 3.5% year-on-year in October compared to a revised 5.6% fall in September, Statistics South Africa said on Thursday. Platinum group metals production was up 24% year-on-year in October

Spot silver rose 0.2% to $21.97 an ounce but was headed for a fourth consecutive weekly drop