Gold Prices Stabilize Ahead of Key Inflation Data Releases
Gold prices stabilized on Friday ahead of key inflation data releases in the US. The data could influence the Federal Reserve's upcoming interest rate decision, which may have a significant impact on gold markets.
As of 05:38 ET (09:38 GMT), spot bullion had risen 0.6% to $4,343.33 an ounce, while platinum had fallen 0.5% to $4,384.09 an ounce. Despite the slight recovery, gold remains on track for a third consecutive weekly decline after dropping 1.8% on Thursday.
Tony Sycamore, senior market analyst at IG, believes that gold needs to reclaim its 200-day moving average near $4,537 to signal that the pullback from the $4,697 high is ending. Until then, he sees potential for a deeper decline towards $4,200.
The inflation data release is expected to show that US consumer price growth accelerated month-on-month in August, mainly due to a surge in gasoline pump prices resulting from the escalating conflict in the Middle East. Economists predict a 0.4% rise between August and July, compared to 0.1% previously.