Gold Price Moves Up as Traders Eye US Inflation Data

Gold Price Rises as US Inflation Data Approaches

Gold price nudged up on Thursday as investors await significant US inflation data that may impact the Federal Reserve's policies. Spot gold appreciated by 0.2%, reaching $2,614.00 per ounce, following a six-session decline. Meanwhile, US gold futures also climbed by 0.2% at $2,631.40.

Market Expectations and Fed Rate Cuts

Traders are keeping a close watch on the US Consumer Price Index (CPI) scheduled for release at 1230 GMT, along with the Producer Price Index (PPI) data set for Friday. Should the core CPI figures be stronger than expected, it could result in increased US Treasury yields, which traditionally burdens gold prices. Ilya Spivak, head of global macro at Tastylive, noted that while there is potential for gold prices to retreat, he does not foresee a significant downward trend.

• Markets suggest an 80% probability of a 25-basis-point rate cut by the Fed in November.
• Many Fed officials from the September meeting supported the initiation of easier monetary policy.
• Geopolitical tensions, especially regarding Iran, could further elevate gold demand.

Current Situation and Future Outlook

The appeal of gold, which does not yield interest, typically rises in low-rate environments or during periods of political instability. San Francisco Fed President Mary Daly indicated likelihood of one or two more rate cuts this year, coinciding with evolving economic conditions. As uncertainties persist in the Middle East, market analysts like Spivak believe there remains a chance for bullion to achieve new highs.

In other precious metals, spot silver increased by 0.3% to $30.60, platinum rose by 1.4% to $958.60, and palladium increased by 1.3% to $1,052.61.