Gold steady as markets strap in for US inflation data

Gold prices remained steady in early Asian trading on Monday as investors prepared for crucial US inflation data to be released this week, which may provide further insights into the Federal Reserve's potential interest rate decisions. Spot gold held at US$4,200.23 per ounce, a level it had reached one week prior, while US gold futures for December delivery rose by 0.20 percent to US$4,225.50.

Upcoming data includes the US Consumer Price Index (CPI) report on Wednesday, followed by the Producer Price Index (PPI) and retail sales data on Thursday. The Federal Reserve raised interest rates by 25 basis points in September, with traders currently assigning an 18 percent probability of a rate hike in October and an 84 percent chance of an increase by December, according to CME's FedWatch tool.

Higher interest rates typically make gold less attractive compared to yield-bearing assets. The US consumer sentiment index declined further in early October due to the increasing cost of living, which is partly attributed to the conflict in the Middle East. Global economic growth for 2026 is expected to slow to 2.60 percent, down from 2.90 percent in the previous year, as the energy crisis stemming from the Middle East situation puts the global economy to the test.

Gold demand in India was sluggish last week, while trading in China, the top consumer market, was subdued during the holiday-shortened trading period. Silver, platinum, and palladium also saw slight increases in their spot prices.

Brief written by urgent.news from New Straits Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.