The price of gold was ticking higher Friday morning amid a mixed dollar as traders await cues from the U.S. budget talks.
Gold for February delivery, the most actively traded contract, edged up $2.80 to $1,732.30 an ounce. Yesterday, gold snapped its three-session losing streak to settle higher helped by a weak dollar and optimism of a deal to avert the fiscal cliff set to begin January next. Gold normally thrives on inflation while deflation tends to push it down.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at a record high of 1,347.02 tons.
Meanwhile, the U.S. dollar was lingering near its one month low versus the euro and sterling. The buck was trading firm around its 7-month high versus the yen, while ticking lower against the Swiss franc.
In economic news, the euro area unemployment rate reached a fresh high in October, with the jobless rate rising marginally to 11.7 percent, in line with expectations, from 11.6 percent in September, data published by Eurostat showed.
Separately, the Eurostat said euro zone's annual inflation, as measured by the harmonized index of consumer prices (HICP) eased more than expected in November. The HICP rose 2.2 percent year-on-year in November, slower than 2.5 percent increase in October. Economists expected the rate of inflation to fall to 2.4 percent.
Elsewhere in the region, German retail sales declined at a sharper-than-expected pace in October as waning economic momentum and rising unemployment eroded consumer willingness to spend. Retail sales fell 2.8 percent month-on-month on a calendar and seasonally adjusted basis in October, the Federal Statistical Office said. Economists expected sales to fall 0.4 percent after a 0.5 percent gain in September.
The prices of silver and platinum were ticking lower in morning deals.
From the U.S., the Commerce Department will release its report on personal income and spending at 8:30 am ET. The consensus estimates call for a 0.3 percent month-over-month increase in personal income, while personal spending may have edged up by 0.1 percent. In September, personal income rose 0.4 percent and personal spending climbed 0.8 percent.
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Market Analysis
May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.