Gold Prices Climb as Rate Cut Expectations Rise
Spot Gold Hits $2,644.16 per Ounce, Weekly Performance Reflects 0.3% Drop

Gold prices experienced an uptick on Friday as recent economic data bolstered expectations for a potential Federal Reserve rate cut next month. Market participants are now closely monitoring the upcoming U.S. Producer Price Index (PPI) report for further guidance.
As of 0514 GMT, spot gold increased by 0.6% to $2,644.16 per ounce, although it was still down approximately 0.3% for the week. The metal had reached a record high of $2,685.42 last month. Meanwhile, U.S. gold futures rose by 0.8%, reaching $2,661.40.
The dollar index fell from a two-month peak, making gold more appealing to investors holding other currencies. Recent data revealed that U.S. consumer prices rose slightly more than anticipated in September, while jobless claims increased to 258,000 for the week ending October 5, surpassing estimates of 230,000. All eyes are now on the PPI report scheduled for release at 1230 GMT.
“Gold is experiencing short-term gains as the recent data has been favorable. If the PPI data comes in lower than expected, gold’s upward momentum could continue,” noted Kelvin Wong, senior market analyst for Asia Pacific at OANDA. He added that from a technical standpoint, gold may retest $2,657, and if it surpasses this level, it could approach its all-time high.
Current market expectations suggest an 84.4% likelihood of a 25-basis-point rate cut in November, up from 76% prior to the latest data, with a 15.6% chance of the Fed maintaining current rates, according to CME’s FedWatch tool. Lower interest rates diminish the opportunity cost associated with holding gold.
In other news, Israeli airstrikes on central Beirut on Thursday night resulted in 22 fatalities, as reported by Lebanon’s health ministry. Analysts have indicated that escalating tensions in the Middle East may further support gold prices, as the metal is traditionally viewed as a safe haven during periods of instability.
In the realm of other precious metals, spot silver rose 0.3% to $31.28 per ounce, while platinum increased by 1% to $976.55, though both metals are expected to see weekly declines. Palladium saw a 1% increase to $1,080.27, marking a nearly 7% rise for the week.
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