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% to $4,132.76 an ounce, as of 1:49 p.m. ET (1748 GMT), after falling to a near two-week low in the previous session. US gold futures for December delivery closed 2% higher at $4,145.60 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 strength this year remain very much in place. There's been some opportunistic buying on dips, and there may also be a slight 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.

US 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 administration is also considering plans to restrict various software-based exports to China, in response to Beijing's latest restrictions on rare earth metals exports. Focus now turns to Friday's US 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. The market has already priced in a 25 basis point interest rate cut, with another rate cut in December.

Gold, a non-yielding asset, tends to benefit from low interest rates. Meanwhile, JP Morgan estimates that gold prices could average $5,055/oz by the fourth quarter of 2026, assuming investor demand and central bank purchases average around 566 tonnes per quarter next year.

Elsewhere, spot silver rose 1.1% to $49.07 per oz, platinum rose 0.5% to $1,629.44, while palladium rose 0.4% to $1,453.90. (alg)

Source: Reuters