FUNDAMENTALS
* Spot gold was little changed at $1,788.56 an ounce, 0038 GMT. US gold futures were flat at $1,800.60.
* Bullion prices were set for a weekly loss of 0.5% as the dollar index headed for a week of gains.
* Market participants now expect a 93% chance of a 50 basis point rate hike at the final Fed meeting of 2022 scheduled for December 13-14.
* Higher interest rates tend to increase the opportunity cost of holding gold because it earns no interest.
* Investors will also be watching the U.S. Consumer Price Index (CPI) report for November, due Dec. 13.
* The number of Americans filing new claims for unemployment benefits increased moderately last week, indicating a still tight and strong labor market despite growing fears of a recession.
* The US economy is heading for a short and shallow recession over the coming year, according to economists polled by Reuters.
* China’s shift, the top consumer of gold, from strict COVID policies, with its promise to spur an economic recovery next year, is likely to dampen growth in the coming months as infections rise, leading to a rebound only later in the year, economists said.
* Spot silver was down 0.1% at $23.05, platinum was up 0.2% at $1,005.10 and palladium was down 0.7% at $1,913.32.
