Oct 23 (Reuters) – Gold prices rose over 1% on Thursday after two consecutive sessions of losses, as renewed geopolitical risks bolstered safe-haven demand and investors braced for key U.S. inflation data due on Friday.
Spot gold was up 1% at $4,132.76 per ounce, as of 01:49 p.m. ET (1748 GMT), after falling to a near two-week low in the previous session.
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U.S. gold futures for December delivery settled 2% higher at $4,145.60 per ounce.
Prices hit a record high of $4,381.21 on Monday, but logged their steepest drop in five years in the following session.
GOLD HAS SOARED IN VALUE THIS YEAR
“All the fundamental factors that have driven gold higher this year remain very much in place. There was some opportunistic buying on the dip and perhaps some uptick in trade and geopolitical tensions that are fostering today’s bid,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Gold prices have gained about 57% this year, driven by geopolitical tensions, economic uncertainty, expectations of rate cuts, and sustained central bank buying.
Focus now turns to Friday’s U.S. consumer price index report, potentially the Federal Reserve’s clearest inflation signal ahead of next week’s policy meeting. The data is expected to show that core inflation held at 3.1% in September.
Gold, a non-yielding asset, tends to benefit in low-interest-rate environments.
Elsewhere, spot silver rose 1.1% to $49.07 per ounce, platinum gained 0.5% to $1,629.44, while palladium rose 0.4% to $1,453.90.
Reporting by Noel John and Pablo Sinha in Bengaluru. Editing by Mark Potter and Tasim Zahid
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