Gold prices gain ground ahead of US inflation data

Gold alloys

Gold prices turned higher today, Dec. 11, as investors awaited the release of US consumer price inflation data amid expectations that the Federal Reserve will trim interest rates at its policy meeting next week.

February gold futures climbed by 0.46%, or $12.50, to $2,730.90 an ounce at 10:07 am Makkah time, while spot prices held ground at $2,691.82 per ounce.

On the other hand, March silver futures plummeted by 0.36% to $32.60 an ounce, in tandem with a 0.55% drop in platinum spot prices to $937.52 per ounce.

All eyes are on the release of US inflation data due later in the day. Expectations suggest a 2.7% annual rise in the November reading of the consumer price index, from 2.6% in the previous month.

This comes a week ahead of the Fed’s Dec. 17-18 meeting, during which it is widely anticipated to reduce interest rates by 25 basis points.

Geopolitical woes in the Middle East reinforced the rise in gold prices during today's session, as the Israeli army announced targeting key weapons depots and two naval bases in Syria, amid a state of political and military vacuum in Damascus after the fall of Syrian President Bashar Assad.

This is in addition to the police raid in South Korea on the office of President Yoon Suk Yeol, against the backdrop of his attempt to start enforcing a martial law as of Dec. 3.