Gold Prices Surge on Rate Cut Hopes

11 Oct 2024 , 10:24 AM

Gold prices rose on Friday as recent data backed predictions on a Federal Reserve interest rate decrease next month, while market investors awaited the U.S. Producer Price Index (PPI) report for more guidance.

According to CME’s FedWatch, markets currently expect the Fed to cut rates by 25 basis points in November, with a 15.6% chance that rates would remain unchanged.

Spot gold increased 0.5% to $2,641.70 per ounce, but was down approximately 0.4% for the week. Last month, prices rose to a record high of $2,685.42.

US gold futures rose 0.7% to $2,658.90.

The dollar index slid from its two-month high, making bullion more appealing to other currency holders.

On Thursday, data indicated that U.S. consumer prices grew slightly more than expected in September, while unemployment claims jumped to 258,000 in the week ending Oct. 5, compared to predictions of 230,000. All eyes are now on the PPI data, which is coming at 1230 GMT.

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