GOLD rose for two consecutive sessions after inflation data

yesterday

XAUUSD rose on Friday (October 11), after US inflation data reinforced the prospect of lower interest rates this year, keeping the dollar below recent peaks, amid haven demand. Safety stemming from geopolitical tensions in the Middle East also boosted gold.

At the end of the trading session on October 11, the spot gold contract increased 1% to 2,656.09 USD/oz, increasing for the second consecutive session. Gold futures contracts added 1.3% to 2,674.40 USD/oz.

The PPI producer price index in the US was unchanged in September, showing that the inflation outlook remains favorable and supporting expectations that the US Federal Reserve (Fed) will lower interest rates next month.

The PPI data looks friendly to precious metals bulls and shows that the Fed is still on track to lower interest rates this year.

This data comes after CPI data in the US rose slightly higher than forecast last month, however, the annual inflation increase was at the lowest level in more than 3 and a half years.

The dollar steadied below a 2-month peak on Friday.

On the physical front, gold dealers in India charged premiums for the first time in two months this week as the upcoming festive season attracted some buying of copper jewellery.

Gold holdings of ETFs increased to nearly 95 tons in the third quarter. This means ETFs are contributing positively to gold demand again for the first time in 10 quarters.