Gold rises on renewed geopolitical risks; US inflation data in focus

“All the fundamental factors that have driven gold higher this year remain very much in place. There was some opportunistic buying on the dip and perhaps some uptick in trade and geopolitical tensions that are fostering today’s bid,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Gold prices have gained about 57% this year, driven by geopolitical tensions, economic uncertainty, expectations of rate cuts, and sustained central bank buying.

US President Donald Trump on Wednesday imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting oil companies Lukoil and Rosneft.

The administration is also considering a plan to restrict a broad range of software-driven exports to China, in response to Beijing’s latest curbs on rare-earth exports.

Focus now turns to Friday’s US consumer price index report, potentially the Federal Reserve’s clearest inflation signal ahead of next week’s policy meeting. The data is expected to show that core inflation held at 3.1% in September.