Precious Metals Preview: COMEX gold and silver on track for weekly decline as dollar stays firm

Precious metals are seen edging up in early Asia although they remain on track for a weekly decline as dollar firms up above 103 mark. Gold and silver are likely to face challenges amid rising Treasury yields reflecting growing expectations of a more aggressive Federal Reserve (Fed) policy outlook. Stronger-than-expected US Consumer Price Index (CPI) inflation data released earlier this week has reinforced expectations of a Fed rate hike in December. Fed Governor Christopher Waller said that a 50-basis-point rate hike should be considered if core inflation remains elevated. Attention will shift to Friday?s US Producer Price Index (PPI) report for further clues on inflation and the Fed's decision on interest rates. Currently, the yellow metal is quoting at $3919.70 an ounce, up 0.89% on the day while silver is up 0.66% at $50.40 an ounce. For the week, gold is set for a near 4% decline while silver is on track for around 3% slide.

Powered by Commodity Insights