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PRECIOUS-Gold prices flat as traders brace for U.S. Fed minutes

Jan 4 (Reuters)Gold prices were listless during early Asian hours on Wednesday, as investors awaited minutes from the Federal Reserve’s December policy meeting that could offer hints on the U.S. central bank’s tightening path.

* Spot gold XAU= held its ground at $1,838.69 per ounce, as of 0023 GMT, after hitting a six-month peak in the previous session. U.S. gold futures GCv1 dipped 0.1% to $1,843.60.

* Minutes from the Fed’s December meeting are due at 1900 GMT on Wednesday. The U.S. central bank had raised rates by 50 basis points (bps) in December after four straight hikes of 75 bps each.

* Bullion is seen as a hedge against inflation, but rising interest rates dull non-yielding asset’s appeal.

* China’s factory activity shrank at a sharper pace in December as surging COVID-19 infections disrupted production and weighed on demand after Beijing largely removed anti-virus restrictions, a private sector survey showed on Tuesday.

* British manufacturers are starting 2023 on the back foot, after they reported one of their sharpest falls in activity since the 2008-09 recession last month, reflecting a sharp fall in new orders and ongoing job cuts.

* Spot silver XAG= rose 0.2% to $24.03, platinum XPT= lost 0.4% to $1,079.71 and palladium XPD= gained 1% to $1,726.59.

DATA/EVENTS (GMT)

0745 France CPI (EU Norm) Prelim YY Dec

0850 France S&P Global Serv, Comp PMIs Dec

0855 Germany S&P Global Serv PMI Dec

0855 Germany S&P Global Comp Final PMI Dec

0900 EU S&P Global Serv, Comp Final PMIs Dec

1500 US ISM Manufacturing PMI Dec

1900 US Federal Open Market Committee issues minutes from its meeting of December 13-14, 2022

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips)

((Ashitha.Shivaprasad@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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