(Bloomberg) – Maintained its worst daily loss since late November as investors weighed in on the latest US inflation data and counted until the conclusion of the last Federal Reserve meeting of the year later on Wednesday.

Prices paid to US producers saw a record annual increase of nearly 10% in November, a surge that will support a chain of inflationary pressures through 2022. This strengthens the case for a tightening of monetary policy in the United States. Fed, which weighs on non-interest bearing assets such as precious metals.

According to Bloomberg Economics, Fed policymakers could announce a doubling of the pace of its bond purchases and set a steeper path for expected interest rate hikes.

Bullion is heading for its first annual loss in three years amid waning central bank monetary support, although uncertainties surrounding the impact of the new variant of the virus could fuel demand for safe-haven assets. The World Health Organization is concerned that omicron may be considered benign, even though it is spreading at a faster rate than any previous strain of Covid-19.

rose 0.1% to $ 1,773.18 an ounce at 9:02 am in Singapore after falling 0.9% on Tuesday. The Bloomberg Dollar Spot Index fell 0.1% after advancing 0.3% in the previous session. climbed, platinum was flat and palladium was trading near the lowest level since March 2020.

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