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Fadel Senna | Afp | Getty Images Gold prices eased on Friday as a rebound in oil prices fanned inflation worries and bolstered higher-for-longer interest rate expectations, though bullion remained on track for a weekly gain as investors awaited key US payrolls data later in the day. Spot gold fell 0.6% to $4,063.39 per ounce by 0248 GMT, but was up 4% so far this week. U.S. gold futures for December delivery dropped 1% to $4,072.90.
"Crude oil has rebounded mostly over the past day, which remains one of the inflationary knockbacks pressuring gold," said Ilya Spivak, head of global macro at Tastylive. Markets are still digesting the U.S. midterm election outcome, leaving gold largely rangebound in consolidation phase, Spivak said. Oil prices rose more than 1% on Friday but were set for a sharp weekly drop on expectations of a de-escalation in the Iran conflict after the U.S. election result, while persistent Middle East supply concerns continued to support crude prices.
Higher energy costs can reinforce expectations that the Federal Reserve will keep interest rates elevated for longer, raising the opportunity cost of holding non-yielding bullion. Asia's tech-heavy markets crumbled as fear of increased regulatory scrutiny and a slowdown in AI build-out unleashed the steepest fall in U.S. stocks since the tariff-triggered "Liberation Day" rout in April 2025. Investors now await the U.S. non-farm payrolls report due at 1330 GMT, with Fed Vice Chair Michelle Bowman also scheduled to speak later in the day.
Traders currently see a 68% chance that the Fed will raise rates in December, according to CME's FedWatch tool. On Thursday, two Fed officials made a case for modest and steady rate increases to tackle above-target inflation. Elsewhere, Goldman Sachs on Thursday lowered its end-2026 gold price forecast to $4,150 per ounce from $4,650, citing the implications of the Fed's more hawkish stance in recent months.
Among other metals, spot silver rose 0.3% to $51.91, platinum gained 0.4% to $1,523.63 and palladium fell 0.2% to $1,029.22. All three metals were headed for weekly gains.
Source: CNBC
