Gold rises as U.S. economic data support case for rate cuts
Gold prices increased on Thursday, driven by U.S. economic data suggesting potential interest rate cuts by the Federal Reserve. Spot gold rose 0.65% to $1,625.46 per ounce, breaking a six-session losing streak, while U.S. gold futures climbed 0.5% to $1,639.90. The rise in consumer prices in September exceeded expectations, and jobless claims increased to 258,000, indicating economic softness. Spot silver also saw a rise of 1.9% to $19.09 per ounce.
Gold prices rose on Thursday as the latest U.S. economic data reinforced the likelihood that the Federal Reserve will cut interest rates next month, weakening the dollar.
Spot gold (XAUUSD:CUR) rose 0.65% at $2,625.46 an ounce as of 12:06 p.m. ET, putting it on a course to end a six-session losing streak. U.S. gold futures rose 0.5% to $2,639.90 an ounce.
U.S. consumer prices rose in September more than economists had expected, while the yearly increase in inflation was the slowest in more than 3-1/2 years. Weekly jobless claims rose to 258,000 for the week ending Oct. 5, compared with the consensus estimate of 230,000.
U.S. Producer Price Index data coming on Friday will provide another sign of the size of rate cuts.
Spot silver (XAGUSD:CUR) rose 1.9% to $31.09 an ounce.