Gold prices up, set for weekly loss

Gold bars

Gold prices rose on Friday after traders added to bets that the Federal Reserve will deliver an interest-rate cut next month following the latest US inflation data.

Gold spot prices edged up 0.57%, or $15, to $2,644.5 per ounce, at 8:48 am Makkah time.

Gold futures for December delivery increased 0.85%, or $22.5, to $ 2,661.8 per ounce, heading for a weekly loss of 0.42%.

Gold is seeing short-term gains as recent data has been positive. If the PPI data comes in softer, gold's momentum could continue upward, Reuters reported, citing Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

The 12-month Consumer Price Index measured 2.4% in September, slightly higher than expectations of 2.3% but down from 2.5% in August. Meanwhile, the initial claims for US unemployment benefits reached their highest level in more than a year in the week ended on Oct. 5.