PRECIOUS-Gold flat as firm dollar, U.S. rate hike dent appeal

Reuters

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       Sept 23 (Reuters) - Gold prices were flat on Friday as
the dollar held close to its recent peak while the likelihood of
more aggressive interest rate hikes by the U.S. Federal Reserve
also weighed on the appeal for non-yielding bullion. 
    FUNDAMENTALS
    * Spot gold  XAU=  was flat at $1,671.60 per ounce by 0107
GMT. U.S. gold futures  GCv1  ticked 0.1% higher to $1,682.80.
    * The dollar index  =USD  was down 0.1%, but not far from a
20-year peak scaled on Thursday in the wake of a 75-basis-point
rate hike by the U.S. central bank and its hawkish outlook.
 USD/ 
    * Rising rates dull bullion's appeal since it yields no
interest. Gold prices have fallen nearly 20% since scaling above
the key $2,000 per ounce mark in March.     
    * Many central banks raised their interest rates this week,
following the U.S. Federal Reserve in the fight against
inflation, which has been sending shockwaves through financial
markets and the economy.  urn:newsml:reuters.com:*:nL1N30T10P
    * Euro zone inflation is set to go higher and price growth
likely to be more persistent than earlier thought, European
Central Bank board member Isabel Schnabel said on Thursday,
defending the ECB's plans to raise rates further.  urn:newsml:reuters.com:*:nL1N30T1YQ
    * The number of Americans filing new claims for unemployment
benefits increased moderately last week, indicating the labour
market remains tight despite the Fed's attempt to cool demand
with aggressive rate hikes.  urn:newsml:reuters.com:*:nL1N30T16J
    * Holdings of SPDR Gold Trust  GLD , the world's largest
gold-backed exchange-traded fund, fell 0.21% to 950.13 tonnes on
Thursday from 952.16 tonnes on Wednesday.  urn:newsml:reuters.com:*:nFWN30T27Z
    * Spot silver  XAG=  was flat at $19.64 per ounce, platinum
 XPT=  rose 0.3% to $903.22, while palladium  XPD=  dipped 0.2%
to $2,165.10. 
    DATA/EVENTS (GMT)
    0715   France       S&P Global PMI Flash      Sept
    0730   Germany   S&P Global PMI Flash         Sept
    0800   EU             S&P Global PMI Flash    Sept
    0830   UK             Flash PMI               Sept
    1345   US             S&P Global PMI Flash    Sept
    1800   Federal Reserve Chair Jerome Powell gives opening
    remarks at the "Fed Listens: Transitioning to the Post
    pandemic Economy" event in Washington
 (Reporting by Eileen Soreng in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223
8780, Outside U.S. +91 80 6749 6131; Reuters Messaging:
eileen.soreng.thomsonreuters.com@reuters.net))

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