Gold is confining to a narrow range as focus shifts to inflation data

Gold prices moved in a narrow range on Friday in thin trade as cautious traders await economic data due later in the day to assess the Federal Reserve’s stance on an interest rate hike.

By 0238 GMT, gold was stable at $1,792.80 an ounce. US gold futures rose 0.4 percent to $1,801.80.

Investors’ attention is shifting to personal consumption expenditures, due at 1330 GMT, seeking signs of inflation.

Prices of the yellow metal fell more than 1 percent in the previous session after US economic data highlighted the country’s economic recovery faster than expected, which supported the dollar and may prompt the Federal Reserve to be more careful in fighting inflation.

Data on Thursday showed that the number of Americans filing new applications for unemployment benefits last week increased slightly less than expected, while the economy recovered faster than expected in the third quarter, growing 3.2% versus 2.9% previously estimated.

As for other precious metals, silver increased 0.3 percent to $23.63, platinum rose 0.3 percent to $980.01, and palladium rose 0.2 percent to $1,683.21.