PRECIOUS METALS - Gold drifts higher after data supports U.S. rate-cut bets
Istanbul, October 11 (Hibya) - Gold prices climbed on Friday after recent data supported bets for a Federal Reserve interest rate cut next month, while market participants awaited the U.S. Producer Price Index report for further direction.
Spot gold rose 0.5 percent to $2,641.70 per ounce but was down about 0.4 percent for the week. Prices hit a record high of $2,685.42 last month. U.S. gold futures gained 0.7 percent to $2,658.90.
Among other metals, spot silver rose 0.2 percent to $31.25 per ounce and platinum climbed 0.9 percent to $975.65. Both metals were headed for weekly declines. Palladium climbed 1.2 percent to $1,082.07 per ounce and was up 1 percent for the week.
Data on Thursday showed that U.S. consumer prices rose slightly more than expected in September, while jobless claims increased to 258,000 in the week ended Oct. 5, versus estimates of 230,000.
According to analysts, markets currently see an 84.4 percent chance of a 25-basis-point rate reduction in November and a 15.6 percent probability of the Fed keeping rates on hold. Lower interest rates reduce the opportunity cost of holding gold.
Israeli strikes in central Beirut on Thursday night killed 22 people, Lebanon’s health ministry said. Analysts have noted that an escalation in the Middle East situation could further support gold, which is considered a safe asset during times of turmoil.
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