Gold prices remained near a one-week low on Friday as investors focused on the possibility of higher U.S. interest rates and awaited the release of key U.S. inflation data later in the day.
Spot gold was trading around $4,318.88 per ounce after earlier touching its lowest level since September 2. The precious metal had already fallen nearly 2% during Thursday’s session following data showing that U.S. producer prices increased in August largely in line with market expectations.
U.S. gold futures for December delivery also moved lower, declining 1.1% to $4,359.50 per ounce.
Market participants are closely watching the upcoming U.S. Consumer Price Index (CPI) report, which could provide further clues about the Federal Reserve’s next interest rate decision. Expectations of tighter monetary policy tend to weigh on gold because the metal does not offer interest income, making higher-yielding assets more attractive to investors.
In other precious metals markets, silver edged down 0.1% to $63.48 per ounce. Platinum remained largely unchanged at $1,777.42 per ounce, while palladium slipped 0.2% to $1,279.25 per ounce.
Traders continue to monitor economic data and Federal Reserve policy signals, as both remain key factors influencing precious metal prices. Any indication of persistent inflation or additional rate hikes could keep pressure on gold in the near term.
