Gold Prices Rise Ahead of U.S. Inflation Data

New York, NY — Gold prices increased on Friday, supported by a weaker dollar as investors prepared for upcoming U.S. inflation data that could influence the Federal Reserve’s interest rate policy. Spot gold rose 0.5% to $4,227.35 per ounce, while U.S. gold futures for December delivery climbed 0.4% to $4,257.90 per ounce.

The dollar index dipped, lingering close to a five-week low against major currencies, making gold more attractive to buyers using other currencies. Kelvin Wong, a senior market analyst at OANDA, noted, “This key data is keeping short-term traders more on the conservative side of adding long positions while the dollar is now supportive of gold.”

Thursday’s U.S. job data revealed that new unemployment claims fell to 191,000 last week, the lowest level in over three years. Conversely, private payrolls decreased by 32,000 in November, marking the steepest drop in more than two and a half years, according to the ADP report.

A Reuters poll of over 100 economists indicated a majority expect the Federal Reserve to lower its key interest rate by 25 basis points at its meeting scheduled for December 9-10. Lower interest rates typically benefit non-yielding assets like gold.

Investors are especially awaiting the delayed September Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, which is due at 1500 GMT. In addition to gold, silver prices surged 2% to $58.27 per ounce, continuing a weekly rise after reaching a record $58.98 on Wednesday. Silver has jumped approximately 101% this year, influenced by supply issues and its inclusion on the U.S. critical minerals list.

In related metals, platinum increased by 1.1% to $1,664.55, though it was set for a weekly loss, while palladium also rose 1.1% to $1,465.02 but is expected to conclude the week lower.