Shafaq News

Gold rose ​on Friday as bargain hunting emerged after prices hit a more than ‌one-year low in the previous session, while market focus shifted to upcoming US inflation data.

Spot gold rose 0.6% to $3,898.27 per ounce by 0740 GMT, but has lost 4.1% so far this week. ​US gold futures for December delivery gained 0.5% to $3,902.70.

"Today's move is more of ​a positioning adjustment, given that several intraday short-term momentum indicators had ⁠kind of hit an extreme oversold level after yesterday's dramatic fall," said Kelvin ​Wong, a senior market analyst at OANDA.

"A short-term driver that could be bullish for ​gold will be a sudden turn of the US Treasury yield, that would potentially slow down the US dollar."

Spot gold prices hit their lowest level since October 2025 on Thursday as oil prices ​climbed on fading hopes for peace in the Middle East, spurring fears of ​higher inflation and elevated interest rates.

Markets see an 89% chance of a 25-basis-point US rate hike ‌in ⁠December, while the probability of a larger 50-basis-point move is priced at 11%, according to CME's FedWatch tool.

Although gold is typically seen as an inflation hedge, higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.

Federal ​Reserve Bank of ​New York President John ⁠Williams said on Thursday more rate hikes are likely as the US central bank seeks to lower high levels of inflation ​in an otherwise healthy economy.

Data showed the number of Americans ​filing new ⁠claims for unemployment benefits increased more than expected last week, but remained at a level consistent with a stable labour market.

Market participants now await the US Producer Price Index data ⁠due ​at 1330 GMT.

Among other metals, spot silver rose 0.1% ​to $50.05 per ounce, platinum fell 0.1% to $1,517.06 and palladium climbed 1.6% to $1,009.62. All three metals were headed for weekly declines.

(Reuters)

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