Gold prices moved higher on Friday as investors stepped in to buy after the metal dropped to its lowest level in more than a year during the previous session. Markets are now waiting for US inflation data, which could provide more clues about the Federal Reserve’s next move on interest rates.
Spot gold rose 1% to $3,915.31 an ounce. However, it is still heading for a weekly loss of around 3.5%. US gold futures for December delivery also gained 0.9% to $3,919.60 an ounce.
Gold fell to its lowest level since October 2025 on Thursday as rising oil prices and fading hopes of an end to the Middle East conflict increased concerns about higher inflation. These fears have also raised expectations that central banks could increase interest rates.
Meanwhile, the Chicago Board of Trade’s FedWatch tool showed that markets see an 89% chance of a 25-basis-point interest rate increase in the US this December. The remaining 11% reflects expectations of a larger 50-basis-point increase.
Other precious metals also moved higher on Friday. Silver gained 1% to $50.49 an ounce, while palladium rose 2.1% to $1,014.50 an ounce. Despite these gains, both metals are still heading for weekly losses.