Gold firms ahead of US inflation data, but heads for weekly fall

Gold prices rose on Friday, supported by lingering geopolitical worries and U.S.-China trade tensions, as investors awaited key U.S. inflation data due later in the day for further cues on the interest rate path.

FUNDAMENTALS

* Spot gold was up 0.3% at $4,138.52 per ounce, as of 0120 GMT. However, bullion was on track for its worst week since May, down 2.7% so far this week.


* U.S. gold futures for December delivery rose 0.2% to $4,152.30 per ounce.

* U.S. President Donald Trump on Wednesday imposed Ukraine-related sanctions on Russia's largest oil companies, Lukoil and Rosneft, in Washington's toughest measures against Russian business during the war with Ukraine.

* Trump will meet Chinese President Xi Jinping next week as part of a trip to Asia, the White House said on Thursday.

* Trade tensions between Washington and Beijing have been escalating, marked by tit-for-tat retaliatory measures announced by both sides.

* Focus is now on the U.S. Consumer Price Index (CPI) report, which is expected to show that core inflation held at 3.1% in September. The report has been delayed due to the government shutdown.

* Investors have nearly fully priced in a 25-basis-point rate cut at the Federal Reserve's meeting next week.

* Gold tends to appreciate when interest rates are low as they reduce the opportunity cost of holding non-yielding bullion.


* JP Morgan analysts on Thursday maintained a bullish outlook on gold, forecasting prices could reach an average of $5,055 per ounce by the fourth quarter of 2026.

* Elsewhere, spot silver fell 0.3% to $48.76 per ounce, platinum rose 0.6% to $1,635.59 and palladium eased 0.3% to $1,453.16.

DATA/EVENTS (GMT)

0500 Japan Leading Indicator Revised Aug

0600 UK Retail Sales MM, YY Sep

0600 UK Retail Sales Ex-Fuel MM Sep

0715 France HCOB Mfg Flash PMI Oct

0715 France HCOB Services Flash PMI Oct

0715 France HCOB Composite Flash PMI Oct

0730 Germany HCOB Mfg Flash PMI Oct

0730 Germany HCOB Services Flash PMI Oct

0730 Germany HCOB Composite Flash PMI Oct

0800 EU HCOB Mfg Flash PMI Oct

0800 EU HCOB Services Flash PMI Oct

0800 EU HCOB Composite Flash PMI Oct

0830 UK Flash Composite PMI Oct

0830 UK Flash Manufacturing PMI Oct

0830 UK Flash Services PMI Oct

1230 US CPI, Core CPI MM, SA Sep

1230 US CPI, Core CPI YY, NSA Sep

1230 US CPI Wage Earner Sep

1345 US S&P Global Mfg PMI Flash Oct

1345 US S&P Global Svcs PMI Flash Oct

1345 US S&P Global Comp PMI Flash Oct

1400 US U Mich Sentiment Final Oct