TSX gains after CPI shows US inflation rose 3%
Investing.com -- Gold prices slipped lower Friday, and were heading for their first weekly decline in 10 weeks as investors locked in profits after recent record highs ahead of the release of key U.S. inflation data.
At 08:05 ET (12:05 GMT), Spot gold fell 1.5% to $4,062.48 an ounce and U.S. Gold Futures fell 1.7% to $4,076.41.
Gold prices are on course to fall more than 3% this week after reaching an all-time high of $4,381.29/oz at the start of the week. Bullion prices had rallied for nine straight weeks, driven by expectations of monetary easing and safe-haven demand amid geopolitical tensions.
"The catalyst appears to be profit-taking in a market that has been hugely overbought in recent weeks. The scale and pace of the rally in spot gold have been dramatic, with prices having gained as much as $1,000/oz since late August. Clearly, market participants were getting increasingly nervous over the sustainability of the uptrend," said analysts at ING, in a note.
Trump-Xi meeting, U.S. inflation data eyed
The White House on Thursday confirmed that President Donald Trump will meet Chinese President Xi Jinping in South Korea next week, sparking hopes of a thaw in trade relations between the world’s two largest economies, weighing on the safe haven metal. .
Traders also turned cautious ahead of the delayed release of the U.S. consumer price index (CPI) for September, a key indicator for the Federal Reserve’s policy outlook.
The data, postponed earlier this month due to an ongoing U.S. government shutdown, is seen as crucial in shaping expectations for the Fed’s rate-cutting cycle, ahead of the meeting next week.
A softer-than-expected CPI reading could reinforce bets on monetary easing and offer support to non-yielding gold, while a hotter print might bolster the dollar and Treasury yields, weighing on bullion prices.
The dollar held firm on Friday, set for a weekly rise, making gold more expensive for buyers holding other currencies.
Goldman remains structurally bullish
Goldman Sachs said it remains structurally bullish on gold despite a recent price pullback, citing continued central bank demand and growing investor interest in the metal as a strategic portfolio hedge.
Despite the recent selloff, “we believe sticky, structural buying will continue further, and still see upside risk to our $4,900 end-2026 forecast,” said Goldman Sachs.
Goldman pointed to sustained inflows from central banks and long-term investors.
“We think sticky inflows continued in September-October as central bank buying likely picked up seasonally,” the note said, adding that “the Fed rate cuts and diversification themes boosted ETF holdings and likely ultra-high-net-worth physical buying.”
Metal markets weak; China’s new 5-yr plan in focus
Other precious and industrial metals were subdued on Friday amid broader caution.
Silver Futures dropped 1.9% to $47.765 per ounce, and Platinum Futures fell 2% to $1,564.70/oz.
Benchmark Copper Futures on the London Metal Exchange gained 0.1% to $10,855.00 a ton, while U.S. Copper Futures slipped 0.3% to $5.0977 a pound.
China’s Communist Party unveiled a new five-year economic plan that emphasized advanced manufacturing, technological self-reliance, and stronger domestic demand.
The policy framework reinforced optimism that Beijing is committed to sustaining growth through structural reform and innovation.
Ayushman Ojha contributed to this article