Gold prices surged more than 1% on Thursday, recovering from a one-week low reached the day before. The uptick came as the US dollar weakened, making gold more affordable for international buyers. Investors are also weighing the chances of a Federal Reserve interest rate hike this month following a recent spike in inflation.
Spot gold climbed 1.3% to $4,158.63 per ounce, while US gold futures for December delivery rose 1.8% to $4,180.00 per ounce. Analysts note that the market remains uncertain about US interest rate policy, contributing to volatility. Kyle Rodda, a senior financial market analyst at Capital.com, highlighted that the $4,000 level is a critical point for gold, with future data likely to influence the Fed's next move.
Recent data showed US consumer prices accelerated in September due to rising gasoline costs. Traders now see a 27% chance of a rate hike later this month, up from 22% before the inflation report. San Francisco Fed President Mary Daly suggested further rate increases may be needed but did not signal urgency for the October meeting. Meanwhile, Vice Chair Michelle Bowman indicated a wait-and-see approach.
Other precious metals also saw gains. Spot silver rose 1.1% to $56.26 per ounce, platinum increased 0.3% to $1,611.15, and palladium climbed 1.3% to $1,107.83. Market attention is now shifting to upcoming Producer Price Index and retail sales data.