Gold eases on inflation worries from higher oil; US payrolls data in focus
GLD•Gold fell 0.6% to $4,063.39 an ounce as higher oil prices stoked inflation worries, but remained up 4% for the week ahead of US payrolls data. Goldman Sachs lowered its end-2026 gold price forecast to $4,150 an ounce from $4,650.
1. Oil and rates weigh
Spot gold fell 0.6% to $4,063.39 an ounce by 0248 GMT on Friday, though it was up 4% so far this week. US gold futures for December delivery dropped 1% to $4,072.90. A rebound in oil prices fanned inflation concerns and expectations that interest rates could stay higher for longer, raising the opportunity cost of holding non-yielding bullion.
2. Investors await data
Investors were awaiting the US non-farm payrolls report, due at 1330 GMT, and a scheduled speech by Federal Reserve Vice Chair Michelle Bowman. Traders saw a 68% chance of a Fed rate increase in December. Goldman Sachs lowered its end-2026 gold price forecast to $4,150 an ounce from $4,650, citing the implications of the Fed's more hawkish stance in recent months. Silver and platinum rose, while palladium fell; all three were headed for weekly gains.
