PRECIOUS-Gold ticks higher on dollar pullback; hawkish Powell caps upside

Shafaq News/ Gold prices edged higher on Thursday, helped by a slight dip in the dollar, although U.S. Federal Reserve Chair Jerome Powell's hawkish remarks limited further gains in zero-yielding bullion.

FUNDAMENTALS

* Spot gold XAU= rose 0.2% to $1,638.32 per ounce, as of 0118 GMT, after falling 0.8% on Wednesday.

* U.S. gold futures GCv1 fell 0.6% to $1,640.70.

* The dollar index =USD edged 0.2% lower, after touching its highest level since Oct. 24 earlier at 112.19.

* The Fed raised interest rates by 75 basis points on Wednesday and said its battle against inflation will require borrowing costs to rise further, yet signaled it may be nearing an inflection point.

* Powell, in a press conference, said the Fed has "ways to go with interest rates before we get to the level that's sufficiently restrictive" and that it is "premature to discuss pausing."

* The European Central Bank "will need additional interest rate increases" to fight off inflation, policymaker Pablo Hernandez de Cos said on Wednesday.

* A Reuters poll showed that gold prices will average $1,712.50 an ounce next year, rising from current levels, as an end to U.S. interest rate rises is expected to revive investor interest in bullion.

* Analysts and traders downgraded their forecasts for platinum and palladium prices for 2023 as a global economic slowdown reduces demand.

* Spot silver XAG= rose 0.3% to $19.33, platinum XPT= rose 0.6% to $935.98 and palladium XPD= edged 0.3% higher to $1,860.08.

Source: Reuters