Gold Holds Near $3,900 as Traders Await US Inflation Data
Spot gold stays close to a key level while investors watch inflation numbers, oil prices and the Federal Reserve’s next move.
Gold – (Staff Reporter/Web Desk) – Gold prices stayed close to the $3,900 mark on Friday as traders waited for new US inflation data. Spot gold was down 1.78% at $3,915.75 an ounce at 10:17 am PST, according to Mettis Global.
On Thursday, gold fell to its weakest level since October 2025. Oil prices rose after hopes for peace in the Middle East faded. That raised fears of higher inflation and higher interest rates, CNBC reported.
Interest rates matter a lot to gold. The metal pays no interest, so it often loses appeal when rates go up.
Traders now expect the US central bank to raise rates again. CME’s FedWatch tool shows an 89% chance of a 25-basis-point hike in December. The chance of a bigger 50-basis-point hike is 11%.
New York Fed President John Williams added to those views on Thursday. He said more rate hikes are likely as the Fed tries to bring down high inflation. He also described the wider US economy as healthy.
Fresh labour data was mixed. New US jobless claims rose more than expected last week. Even so, they stayed at a level that points to a stable job market.
All eyes are now on the US Producer Price Index (PPI), due at 1330 GMT. The report shows price changes at the wholesale level. A hot reading could push rate hike bets higher and add more pressure on gold.
Other precious metals moved higher. Spot silver rose 1% to $50.49 an ounce. Palladium climbed 2.1% to $1,014.50, and spot platinum gained 1.3% to $1,538.22.
Comments are closed, but trackbacks and pingbacks are open.