Gold prices pared earlier losses on Friday following slightly softer-than-expected U.S. inflation data, but the precious metal is set to end a nine-week winning streak. Investors remain attentive to upcoming Federal Reserve interest rate decisions and global trade developments, which continue to influence safe-haven demand.

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Key Highlights

• Spot gold steady at $4,125 per ounce, after falling nearly 2% earlier in the session
• U.S. gold futures for December delivery at $4,143.20 per ounce
• Gold down 2.8% for the week, set for first weekly loss in ten weeks
• Silver prices down about 6% this week

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Inflation Data Supports Rate Cut Expectations

Data from the U.S. Labor Department showed that consumer prices rose 3.0% year-over-year in September, slightly below economists’ expectations of 3.1%. The softer inflation reading reinforces market expectations that the Federal Reserve will cut interest rates at its upcoming meeting, with another cut possible in December.

Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold and silver, providing support for bullion prices despite recent profit-taking.

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Gold and Silver Market Movements

• Spot gold hit a record high of $4,381.21 per ounce earlier this week, but has dropped over 6% since due to profit booking and easing U.S.-China trade tensions.
• Spot silver fell 0.3% to $48.77 per ounce, on track for a weekly loss of around 6%.
• Platinum slipped 0.6% to $1,616.46 per ounce, while palladium gained 0.2% to $1,459.25 per ounce.

Metals trader Tai Wong commented:

“Gold and silver jump as September core CPI comes in lower than expectations, but it’s likely insufficient to entirely blunt this week’s selloff. Price action suggests that gold and especially silver need another leg lower before consolidation.”

Phillip Streible, chief market strategist at Blue Line Futures, added:

“If gold falls below $4,000, we may see a dramatic washout in the market, potentially down to $3,850, the next major support level.”

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Geopolitical and Trade Influences

Gold’s price rally this year has been fueled by geopolitical tensions, trade uncertainties, and robust central bank buying, alongside expectations of U.S. interest rate cuts.

The White House confirmed that President Donald Trump will meet Chinese President Xi Jinping next week, ahead of a November 1 deadline for additional U.S. tariffs on Chinese imports. Market participants are closely watching this meeting, as progress in trade negotiations could influence safe-haven demand for gold.

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Outlook for Investors

Despite the recent pullback, bullion has gained 55% in 2025 due to global economic uncertainties. Analysts suggest that gold may continue to experience short-term volatility, but underlying support remains strong from rate cut expectations and ongoing geopolitical risks.

Investors are advised to monitor:

• U.S. Federal Reserve interest rate decisions
• Inflation data and CPI trends
• Developments in U.S.-China trade relations
• Major technical support levels for gold at $4,000 and $3,850 per ounce