Mumbai, 11 Oct (Commoditiescontrol): Gold prices inched higher on Friday as recent U.S. economic data bolstered expectations of an interest rate cut by the Federal Reserve next month.
Spot gold rose 0.3% to $2,636.13 per ounce, while U.S. gold futures gained 0.5% to $2,653.40. Despite the daily uptick, gold was still down around 0.6% for the week.
The dollar index retreated from two-month highs, making gold more attractive for investors holding other currencies.
Thursday’s data revealed U.S. consumer prices increased slightly more than expected in September, while weekly jobless claims rose to 258,000, surpassing estimates of 230,000. This fueled speculation of an impending rate cut, with market projections now indicating an 83% chance of a 25-basis-point reduction in November.
Investors are closely watching the upcoming U.S. Producer Price Index (PPI) report for further clues on the Federal Reserve’s policy direction. Lower interest rates typically benefit gold by reducing the opportunity cost of holding non-yielding assets like bullion. New York Fed President John Williams remarked that the pace and timing of any rate cuts will be data-dependent but hinted that moving toward a neutral monetary policy stance is likely.
In other metals, spot silver edged up 0.1% to $31.21 per ounce, platinum gained 0.7% to $974.20, and palladium rose 0.8% to $1,077.70.
Meanwhile, geopolitical tensions remain a factor, with Gulf states urging the U.S. to dissuade Israel from striking Iran’s oil facilities, fearing retaliatory attacks on their own infrastructure from Tehran’s proxies.
(By Commoditiescontrol Bureau: 09820130172)
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