Gold prices rose more than 1% on Thursday (October 23rd) after two consecutive sessions of declines, as resurgent geopolitical risks boosted demand for safe-haven assets and investors prepared for key US inflation data due on Friday.

Spot gold rose 1.4% to $4,149.39 an ounce, as of 11:05 a.m. ET (15:05 GMT), after falling to a near two-week low in the previous session. US gold futures for December delivery rose 2.5% to $4,165.80 an ounce.

Prices hit a record high of $4,381.21 on Monday, but posted their sharpest decline in five years in the following session.

GOLD VALUES JUMP THIS YEAR

"All the fundamental factors that have driven gold's rally this year remain very much in place. There has been some opportunistic buying during dips, and there may also be an escalation in trade and geopolitical tensions driving prices higher today," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Gold prices have risen about 57% this year, driven by geopolitical tensions, economic uncertainty, expectations of interest rate cuts, and continued buying by central banks. U.S. President Donald Trump on Wednesday imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting oil companies Lukoil and Rosneft.

The government is also considering plans to restrict various software-based exports to China, in response to Beijing's latest restrictions on rare earth exports. Focus now turns to Friday's U.S. consumer price index report, potentially the clearest inflation signal from the Federal Reserve ahead of next week's policy meeting. The data is expected to show core inflation held at 3.1% in September. Markets have already priced in a 25 basis point interest rate cut, with another cut in December.

Gold, a non-yielding asset, tends to benefit in low interest rate environments. Meanwhile, JP Morgan estimates that gold prices could average $5,055/oz in the fourth quarter of 2026, assuming investor demand and central bank purchases average around 566 tonnes per quarter next year. Elsewhere, spot silver rose 1.5% to $49.25 per oz, platinum rose 0.1% to $1,623.99, and palladium rose 0.8% to $1,470.71. (alg)

Source: Reuters