Gold prices rose on Friday, supported by ongoing geopolitical concerns and trade tensions between the United States and China. Investors are awaiting key inflation data from the U.S. scheduled for release later today, which could provide further indications on the future of interest rates.
In spot trading, gold increased by 0.3% to $4,138.52 per ounce by 01:20 GMT. However, the precious metal is on track for its worst week since May, having declined nearly 2.7% since the beginning of the week.
U.S. gold futures for December delivery also rose by 0.2% to $4,152.30 per ounce.
Investors are almost fully expecting a 25 basis point rate cut at the Federal Reserve’s meeting next week.
Typically, gold tends to rise when interest rates are low, as this reduces the opportunity cost of holding the non-yielding metal.
As for other precious metals, spot silver fell by 0.3% to $48.76 per ounce, platinum rose by 0.6% to $1,635.59, and palladium decreased by 0.3% to $1,453.16.
