Gold firms ahead of US inflation data, but heads for weekly fall

Investors have nearly fully priced in a 25-basis-point rate cut at the US Federal Reserve’s meeting next week.

Gold prices rose on Friday (Oct 24), supported by lingering geopolitical worries and US-China trade tensions, as investors awaited key US inflation data due later in the day for further cues on the interest rate path.

Spot gold was up 0.3 per cent at US$4,138.52 per ounce, as at 9.20 am. However, bullion was on track for its worst week since May, down 2.7 per cent so far this week.

US gold futures for December delivery rose 0.2 per cent to US$4,152.30 per ounce.

US President Donald Trump on Wednesday imposed Ukraine-related sanctions on Russia’s largest oil companies, Lukoil and Rosneft, in Washington’s toughest measures against Russian business during the war with Ukraine.

Trump will meet Chinese President Xi Jinping next week as part of a trip to Asia, the White House said on Thursday.

Trade tensions between Washington and Beijing have been escalating, marked by tit-for-tat retaliatory measures announced by both sides.

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Focus is now on the US Consumer Price Index (CPI) report, which is expected to show that core inflation held at 3.1 per cent in September. The report has been delayed due to the government shutdown.

Investors have nearly fully priced in a 25-basis-point rate cut at the US Federal Reserve’s meeting next week.

Gold tends to appreciate when interest rates are low as they reduce the opportunity cost of holding non-yielding bullion.

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JP Morgan analysts on Thursday maintained a bullish outlook on gold, forecasting prices could reach an average of US$5,055 per ounce by the fourth quarter of 2026.

Elsewhere, spot silver fell 0.3 per cent to US$48.76 per ounce, platinum rose 0.6 per cent to US$1,635.59 and palladium eased 0.3 per cent to US$1,453.16. REUTERS