Gold Prices Stabilize Near Weekly Lows Amid Inflation Data Watch

Gold prices remained stable today, Friday, near their lowest levels recorded this week, driven by growing expectations of interest rate hikes in the United States. Investors are closely awaiting the release of US Consumer Price Index data later today, which could influence the future direction of monetary policy. Spot gold held steady at approximately $4318.88 per ounce, after having reached its lowest point since September 2 earlier. Prices saw a nearly two percent decline on Thursday, following the announcement of a rise in US producer prices for August, which aligned with expectations. Meanwhile, US gold futures for December delivery dropped by 1.1 percent, settling at $4359.50. Traders on Thursday anticipated that the Federal Reserve (the US central bank) would move to raise short-term borrowing costs during its meeting next week. This projection came after the publication of the first key report in a series of inflation data expected this week. Figures showed the Producer Price Index for final demand increased by 0.4 percent last month, following a revised 0.1 percent rise in July, according to the Bureau of Labor Statistics. The US Consumer Price Index data is scheduled for release at 12:30 PM GMT. In related developments, the European Central Bank raised interest rates for the second time this year in an effort to curb rising inflation, particularly that driven by energy prices. The bank warned that price pressures might persist for a period, reinforcing expectations for further monetary tightening, possibly in October. While gold is traditionally considered a safe haven against inflation, a high-interest-rate environment puts pressure on the value of this non-yielding precious metal. Regarding other precious metals, spot silver experienced a slight decrease of 0.1 percent to record $63.48. Platinum prices remained stable at $1777.42, while palladium declined by 0.2 percent to reach $1279.25.