Gold edges down on profit-taking; silver at record high

Gold edged lower on Friday after hitting a more than seven-week high in the previous session, as investors booked profits, while silver surged to yet another all-time peak on Thursday.

FUNDAMENTALS

* Spot gold dipped 0.2% to USD 4,277.64 per ounce, as of 0029 GMT.

* US gold futures for February delivery was down 0.1% at USD 4,307.80 per ounce.

* The US dollar plummeted to an eight-week low in the previous session, making greenback-priced gold more affordable for overseas buyers.

* The Fed delivered its third-consecutive 25-basis-point rate cut for the year in a deeply divided vote on Wednesday, but signaled that further cuts were unlikely as it waits for clearer signs on a softening job market and inflation that “remains somewhat elevated”.

* The number of Americans filing new applications for unemployment benefits increased by the most in nearly 4-1/2 years last week, but the surge likely does not suggest a material weakening in labor market conditions.

* A majority of US central bankers expect they will need to cut short-term interest rates next year, but in an unprecedented move for the Fed, six policymakers indicated they didn’t support even Wednesday’s quarter-point cut.

* Fed Chair Jerome Powell also declined to offer any guidance on whether another cut is likely in the near term.

* Non-yielding assets such as gold tend to perform well in low-interest-rate environments.

* Investors now await the monthly US non-farm payrolls report, set to be released on December 16, for fresh cues on the Fed’s policy path.

* India’s pension regulator on Wednesday issued revised investment rules for the country’s pension funds, permitting investments in gold and silver exchange-traded funds.

* Meanwhile, spot silver fell 0.5% to USD 63.31/oz after scaling a record peak of USD 64.31 on Thursday. Year-to-date, prices have surged 119%, supported by rising industrial demand, falling inventories, and the metal’s entry into the US critical minerals list.

* Elsewhere, platinum lost 0.2% to USD 1,691.45, while palladium fell 0.5% to USD 1,476.5.

(Reporting by Ishaan Arora; Editing by Rashmi Aich)