Gold rebounds but heads for weekly fall before US inflation data
GLD•Spot gold rose 0.5% to $3,894.52 an ounce on Friday but was down nearly 4% for the week ahead of US Producer Price Index data. Silver, platinum and palladium were also on course for weekly declines.
1. Gold recovers from selloff
Spot gold rose 0.5% to $3,894.52 per ounce by 1209 GMT on Friday, after losing nearly 4% so far this week. US gold futures for December delivery gained 0.4% to $3,898.70 per ounce. Gold had fallen 3% on Thursday to a more-than-one-year low.
2. Inflation data in focus
Investors awaited US Producer Price Index data due at 1330 GMT for signals on inflation pressures. Markets priced in an 88% chance of a 25-basis-point US rate hike in December and a 12% chance of a 50-basis-point move. Higher interest rates tend to diminish gold’s appeal because bullion pays no interest. Silver was steady at $50.05 per ounce, platinum fell 0.31% to $1,513.92 and palladium rose 2% to $1,013.13; all three were on course for weekly losses.
