Gold firm

Bengaluru :Gold prices were little changed on Thursday after upbeat U.S. economic data bolstered the prospects of interest rate increases next month and beyond by the Federal Reserve.
Spot gold was nearly unchanged at $1,278.55 per ounce at 0354 GMT. On Wednesday, gold touched a session high of $1,289.09, a peak since Oct. 20, before paring gains and ending the session about 0.2 percent lower due to a stronger dollar. U.S. gold futures for December delivery gained 0.1 percent $1,277.80. "It (gold´s range bound movement) is a combination of Fed rate hike (expectations) and equity market volatility. There are increasing risks in the market now," said Argonaut Securities analyst Helen Lau. "Views around these two countering forces could keep gold flat in the short-term," she added. Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.