Gold is growing steadily in anticipation of inflation data

On Thursday, gold prices show moderate growth, awaiting the publication of key data on inflation in the United States. The results of the data will allow the markets to assess the future course of the Fed's monetary policy.

Spot gold increased by 0.34% to $26,111 per ounce, breaking a six-day series of falls. Gold futures rose 0.29% to $2,633.

The expectation of inflation data for September has a significant impact on the market. Experts predict that an increase in the base CPI may lead to an increase in the yield of US Treasury bonds, which will negatively affect gold.

Markets estimate an 85% probability of a 25 basis point Fed rate cut in November. The minutes of the Fed's September meeting showed that most officials supported the beginning of an era of monetary easing, but further easing will depend on incoming data.

Low-yield gold is in demand in conditions of low interest rates and during economic and geopolitical turmoil. BMI analysts raised their gold price forecast for 2024 to $2,375 from $2,250, citing a potential Fed rate cut, geopolitical tensions and the upcoming US presidential election.