Gold ticks up on dipping oil prices, but still poised for a weekly drop on inflation concerns as expectations rise that the Federal Reserve will increase interest rates again at their meeting next month.
The yellow metal’s price rose back near the $4300 an ounce mark as oil prices fell on renewed hopes for a US-Iran deal as negotiators in New York once again discuss the opening of the Strait of Hormuz. The war in Iran and the subsequent closure of the Strait, a key energy chokepoint to the Persian Gulf, has triggered higher prices for gasoline, diesel and many goods.
In economic news, data on durable goods orders and the University of Michigan consumer survey come out Friday and may influence investor sentiment.
December gold futures slipped 0.5% Thursday to settle at $4,298.00 an ounce on Comex, and the front-month contract dropped 2.9% in the first four days of the week. Bullion rose 9.1% last month after gaining 1.7% in July, its first monthly increase since February, and sliding 12% in June. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently up $21.70 (+0.50%) an ounce to $4319.70 and the DG spot price is $4275.30.
The next key inflation report is due next week in the Fed’s favorite inflation measure, the personal consumption expenditures price index, which will come out Wednesday with August data. It will be followed on Friday of next week by the key U.S. monthly jobs report for September. The Fed closely watches both inflation and the labor market when setting monetary policy.
The Fed last week raised interest rates for the first time in three years, increasing the benchmark rate to 3.75% to 4.00%, in large part because of inflation linked to high energy prices. The central bank indicated that another hike might be coming this year.
Over 64% of the investors tracked by the CME FedWatch Tool are now betting that the Fed will raise interest rates by another 25 basis points in October. Before last week’s rate hike, the Fed had kept interest rates unchanged this year after three previous rate cuts. The next Fed policy meeting is Oct. 28, six days before the U.S. midterm elections. The higher prices of goods are being seen as a pivotal issue in the election.
Investors are also closely watching this week’s summit between U.S. President Donald Trump and Chinese President Xi Jinping in Washington for signals that some of the tensions between the two powers may be resolved, including disputes over access to rare earth and other metals. But no announcements have yet been made. China is the world’s largest gold consumer and imports have climbed this year because of lower global prices and a stronger yuan.
December silver futures decreased 1.5% Thursday to settle at $64.00 an ounce on Comex, and the front-month contract fell 4.7% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver climbed 16% last month after sliding 3.6% in July and declining 21% in June. It lost 15% in the first half of 2026 after rising 141% last year. The December contract is currently up $0.448 (+0.70%) an ounce to $64.450 and the DG spot price is $63.97.
Spot palladium rose 0.6% Thursday to $1,272.50 an ounce, but is down 3.3% so far this week. Palladium rallied 5.7% last month after adding 5.8% in July and dropping 11% in June. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is down $18.60 an ounce to $1260.50.
Spot platinum edged up 0.1% Thursday to $1,749.80 an ounce but is down 3.3% this week. Platinum rose 7.5% last month after gaining 6.6% in July and tumbling 19% in June. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently up $10.00 an ounce to $1765.00.
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