FX.co ★ Gold Trims Losses as US Inflation Data Fuels Rate Cut Bets

Gold prices trimmed their losses but stayed below $4,100 per ounce on Friday, following weaker-than-expected U.S. Consumer Price Index (CPI) data, which heightened anticipations of reduced interest rates. The report, postponed by the U.S. government shutdown, indicated that headline inflation rose to 3% in September — the highest since January, yet under the projected 3.1%. Meanwhile, core inflation decreased to 3% from 3.1%, suggesting a moderation in price pressures despite the ongoing trade conflict initiated by Trump. Nonetheless, gold is poised to end a nine-week streak of gains, having dipped more than 5% earlier in the week, marking its most significant intraday decline in five years after a series of record highs prompted substantial selling. Despite this setback, gold has gained approximately 55% this year, buoyed by persistent trade tensions and geopolitical uncertainties, including the latest U.S. sanctions on Russia and the anticipated trade discussions between Trump and Xi scheduled for next week.