Gold Rises Near Record as Traders Wait for US Inflation Prints

(Bloomberg) -- Gold advanced as traders awaited US inflation data, rising back toward the record price reached on Tuesday after jobs figures that strengthened the case for interest-rate cuts.

Bullion gained 0.6% to approach $3,650 an ounce, after peaking above $3,674 on Tuesday when a preliminary revision showed that the number of workers on payrolls will likely be revised down by a record 911,000. The Federal Reserve is due to set monetary policy next week, following US producer and consumer inflation prints due on Wednesday and Thursday that will also shape the decision.

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Geopolitical risk was also in focus. President Donald Trump told European officials that he’s willing to impose new tariffs on India and China to push Russian leader Vladimir Putin to the negotiating table with Ukraine — but only if EU nations did so as well. Separately, Israel on Tuesday conducted an unprecedented military strike against senior Hamas leaders in Doha.

Bullion has rallied by almost 40% this year on central-bank buying, geopolitical uncertainties, and concerns about the impacts of US tariffs on the global economy. Inflows into gold-backed exchange-traded funds have provided additional support, with many banks including Goldman Sachs Group Inc. predicting further gains in prices as the Fed is expected to cut interest rates.

“Rising risks to the labor market will likely prompt the Fed to maintain its easing stance through to March 2026,” ANZ Group Holdings Ltd. analysts Soni Kumari and Daniel Hynes wrote in a note, raising the bank’s year-end gold forecast by $200 to $3,800.

“We expect continued growth in gold holdings across major markets, including China and India. We project an additional 200 tons of ETF investment for the remainder of 2025,” the ANZ analysts said.

Trump’s bid to extend his influence over the Fed, challenging its independence, has also aided gold. A judge temporarily blocked the president from removing Governor Lisa Cook, allowing her to remain on the job as she challenges the Trump’s efforts to oust her over allegations of mortgage fraud. The decision means Cook can likely attend next week’s FOMC.

Several central banks have signaled their sustained appetite for bullion in recent days, pointing to continued official-sector purchases. This week, the Czech authorities said its gold holdings were at a record, after data showed a rise at the People’s Bank of China. India’s central bank has also increased buying.

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Gold was 0.6% higher at $3,647.59 an ounce at 10:37 a.m. in London. The Bloomberg Dollar Spot Index was flat, after edging higher on Tuesday. Silver rose above $41 an ounce, as palladium and platinum also gained.

--With assistance from Mark Burton.

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