Gold rises amid escalating US-China tensions and anticipation of inflation data
Gold prices recorded a slight increase in trading on Friday, driven by investors' concerns over escalating geopolitical and trade tensions between the United States and China, as traders await the release of US inflation data later today, which could determine the direction of interest rates in the coming period.
By 01:20 GMT, gold rose by 0.3% in spot transactions to reach $4138.52 per ounce, although it is heading towards recording its worst weekly performance since May, with a decline of nearly 2.7% since the beginning of the week. US gold futures for December delivery also increased by 0.2% to $4152.30 per ounce.
The upward movement in the price of the yellow metal came after US President Donald Trump announced new sanctions against the Russian companies "Rosneft" and "Lukoil", linked to the war in Ukraine, described as "the toughest US measures against Russian companies since the outbreak of the conflict".
In a related context, the White House reported that Trump will meet with Chinese President Xi Jinping next week during an Asian tour, which has heightened anticipation in the markets amid ongoing trade tensions between the two countries.
For their part, investors expect the US Federal Reserve to cut interest rates by 25 basis points in its upcoming meeting next week, a move likely to support gold prices in the future, as "the yellow metal typically benefits from lower interest rates because they reduce the opportunity cost of holding non-yielding assets".
In the market for other precious metals, silver fell by 0.3% to record $48.76 per ounce, while platinum rose by 0.6% to reach $1635.59, and palladium decreased by 0.3% to $1453.16 per ounce.
