Gold drops as investors eye US data
Gold declined on Friday morning as traders anticipated the release of American inflation figures later that day. Futures contracts for December delivery fell 0.44 percent to 1,23,552 rupees per 10 grams on the Multi Commodity Exchange, while silver dropped 0.98 percent to 1,47,052 rupees per kilogram. The precious metal posted its first weekly loss in nine consecutive weeks of gains as investors locked in profits following record highs.
Market analysts attributed the retreat to optimism about potential United States-China trade negotiations and dollar strength. Spot gold decreased 0.2 percent to $4,118.68 per ounce at 3:15 a.m. GMT with bullion posting a 3 percent weekly decline. The metal remains up more than 50 percent year-to-date despite a single-session plunge of over 5 percent earlier this week.
Attention centered on the Consumer Price Index report expected to show core inflation held at 3.1 percent in September. Traders also anticipated a 25-basis-point Federal Reserve rate reduction next week. Lower borrowing costs typically benefit gold by reducing returns from interest-bearing assets. Meetings between President Donald Trump and Chinese President Xi Jinping next week added uncertainty to trading conditions.
