Gold on track for third weekly loss as US inflation data looms

Gold prices edged higher ‌on Friday but were headed for a third consecutive weekly fall as expectations of a US rate hike strengthened, while traders awaited US consumer price index data for further ​clues on the Federal Reserve’s policy path. Spot gold was up 0. 2% at $4, 324. 79 ​per ounce, by 0020 GMT, but down more than 2% for the week so far. U. S. ⁠gold futures for December delivery were down 1% at $4, 364. 70. The US inflation report ​is due at 1230 GMT. Data on Thursday showed that Producer Price Index for final ​demand rose 0. 4% in August after an upwardly revised 0. 1% gain in July. Following which, traders nudged up bets that the Fed will raise interest rates at its meeting next week and spot gold ​subsequently fell nearly 2%. “A stronger-than-expected reading would reinforce the case for several ​interest rate increases, potentially pushing Treasury yields and the dollar higher and placing additional pressure ‌on ⁠gold, ” said Wael Makarem, financial markets strategists lead, Exness. “Ongoing Middle East tensions could continue to weigh on gold through higher inflation expectations. ” Despite gold being known as an inflation hedge, rising interest rates often pressure the metal, which offers no ​yield. Houthis seized control ​of Yemen’s port ⁠city of Mocha and advanced down the Red Sea coast to strategic islands, military sources said, hours after US President Donald ​Trump said he expected the Iran war to end after ​the ⁠midterm elections. Oil prices rose and both major benchmarks are on track to end the week at over $100-a-barrel level for the first time since mid-May. Among other metals, spot ⁠silver fell ​0. 3% to $63. 39 and has lost more than ​4% for the week. Platinum eased 0. 2% at $1, 773. 93 while palladium lost 0. 3% to $1, 278. 51, with both metals headed for weekly ​declines.

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