Gold moved up in the domestic futures market Thursday morning ahead of US inflation data, which will shape expectations for the US Federal Reserve’s monetary policy stance.
The US Consumer Price Index (CPI) prints for September are due today, and Producer Price Index (PPI) data will be out on Friday.
Expectations of further rate cuts by the US Fed in the coming months and geopolitical tensions are the two key factors supporting gold prices.
Recent macro data in the US has poured cold water on the expectations of an aggressive rate cut by the Fed. According to a Reuters report, markets now see an 80 per cent chance of a 25-basis-point Fed rate cut in November.
(More to come)