Gold price today: Gold rate recovers after consecutive losses but there is a concern. Details here

Gold price has recovered from the losses and gained its mojo back. Spot gold was up 1.3 per cent to $4,156.58 per ounce. US gold futures for December delivery rose 1.7 per cent to $4,178.50 per ounce. Among other metals, spot silver gained 1.9 per cent to $56.69 per ounce, platinum rose 0.7 per cent to $1,617.50 per ounce and palladium climbed 3.5 per cent to $1,132 per ounce.

Gold prices climbed more than 1 per cent on Thursday as the dollar and US Treasury yields remained under pressure, while investors looked to fresh US inflation data for clues on whether the Federal Reserve will raise interest rates again this month.

Gold Rate Prediction


The dollar slipped 0.5 per cent, making greenback-priced bullion more affordable for holders of other currencies, while the benchmark 10-year Treasury yield also fell to a three-week low.

"Falling real yields and resilient investment demand help gold recover from its post-CPI selloff, but the technical outlook remains fragile," said Ole Hansen, head of commodity strategy at Saxo Bank.

US consumer prices accelerated in September on a surge in gasoline costs, with price pressures spreading beyond energy and raising concerns among economists that underlying inflation could be getting sticky.

US Fed Interest Rate impact on Gold Price

Market participants are now awaiting Producer Price Index (PPI) and retail sales data due for further clues on inflation trends and the Federal Reserve's policy path.

"If the PPI comes in as expected, which is 5.4 per cent year on year, then that pattern will be continued. So you would expect bond yields to rise again. We're just going to have to watch it very carefully," said Rhona O'Connell, head of market analysis at Stone X.

Traders are pricing in about a 29 per cent chance of a rate hike later this month, compared with 22 per cent before the data, according to CME's FedWatch Tool.

Gold is traditionally seen as a hedge against inflation, but higher interest rates make the non-yielding asset less attractive.

San Francisco Fed President Mary Daly said further rate increases would probably be needed, but signalled no need to act at the October meeting; Vice Chair for Supervision Michelle Bowman said there was time to wait.