Gold Prices Rebound Toward $4,350 Ahead of US CPI Data Release
Gold prices rebounded on Friday after a nearly 2% drop in the previous session as investors evaluated expectations for U.S. interest rates ahead of August consumer inflation data due later that day. At one point during trading, spot gold rose to $4,351.28 an ounce while gold futures edged lower at $4,391.37. Silver and platinum also saw gains amid a relatively stable dollar index. Gold was still on track for its third consecutive weekly decline after falling 1.8% the day before. The U.S. producer price data showed a 0.4% increase in August, aligning with forecasts and marking the largest rise since May. Meanwhile, rising energy prices due to geopolitical tensions between the United States and Iran kept Brent crude near $108 per barrel. Investment demand for gold remained strong in August as global physically backed gold ETFs recorded an inflow of $18 billion—the second-largest monthly influx on record—bringing total holdings to a new high. Analyst Tony Sycamore noted that unless gold breaks above its 200-day moving average, it could fall toward the $4,200 level.
