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

Fri Oct 24 2025

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

FUNDAMENTALS

* Spot gold was up 0.3% at $4,138.52 per ounce, as of 0120 GMT. However, bullion was on track for its worst week since May, down 2.7% so far this week.

* U.S. gold futures for December delivery rose 0.2% to $4,152.30 per ounce.

* U.S. 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.

* Focus is now on the U.S. Consumer Price Index (CPI) report, which is expected to show that core inflation held at 3.1% 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 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.

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

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

Source: http://in.reuters.com