Gold Contracts Rise Amid Anticipation of U.S. Inflation Data

SadaNews Economy - Gold prices shifted towards an increase during today’s session on Thursday, following sharp losses on Wednesday, and amidst anticipation of the upcoming U.S. inflation data, with the price today reaching $4,114.37 per ounce.

The U.S. Consumer Price Index report, scheduled to be released tomorrow on Friday after being postponed due to the government shutdown, is expected to show that core inflation remained stable at 3.1% in September.

Investors are nearly fully expecting the U.S. Federal Reserve to cut interest rates by 25 basis points at its meeting scheduled for next week.

Gold usually tends to rise when interest rates are low, as this reduces the opportunity cost of holding the non-yielding precious metal.

Gold prices have risen by about 56% since the beginning of the year, reaching an all-time high of $4,381.21 on Monday, benefiting from geopolitical and economic uncertainty and bets on rate cuts.