Gold holds firm ahead of US inflation data

Gold prices remained stable at US$4,165.25 per ounce on Wednesday (October 14) as investors anticipated the release of US consumer price index data later in the day. The US gold futures for December delivery increased by 0.3 percent to US$4,188.70. Analyst Ilya Spivak stated that the market is not experiencing a significant move, but the gold price holding a range while oil is rallying indicates gold's struggle to rally.

Geopolitical tensions, including an attack on a Saudi Aramco administrative building in Dhahran, contributed to oil price increases. If economic indicators, such as CPI, PPI, and retail sales data, suggest weaker economic momentum, markets may lower expectations for further Fed rate hikes in 2026, potentially supporting gold prices.

Fed officials, including New York Fed president John Williams and governor Christopher Waller, reaffirmed that the central bank may need to raise interest rates again in 2026 to combat inflation. Although gold is generally viewed as an inflation hedge, higher interest rates typically reduce the appeal of non-yielding assets like gold to investors.

Silver declined 0.2 percent to US$59.33 per ounce, platinum remained steady at US$1,663.16, and palladium increased by 0.7 percent to US$1,133.49.