Gold inches down as dollar firms, focus on US inflation data

By Al Mayadeen English
Source: Agencies
23 Oct 2025 09:45

Gold prices dip slightly as the dollar strengthens ahead of key US inflation data, with investors awaiting signals on the Federal Reserves.

Listen

Employees of ProAurum gold house prepares 1 Kg gold bars of 999.9 purity in the safe deposit boxes room in Munich, Germany, December 13, 2018. (AP)

Gold prices edged lower on Thursday as the US dollar strengthened, with investors awaiting crucial inflation figures that could determine the Federal Reserve’s next interest rate decision.

According to Reuters, spot gold slipped 0.1% to $4,089.21 per ounce by 5:02 am GMT, while US December gold futures rose slightly to $4,104.70. The dollar index, which tracks the greenback against six major currencies, gained 0.2%, making bullion more expensive for buyers using other currencies.

Markets await delayed US inflation data

Traders are bracing for the long-awaited US Consumer Price Index (CPI) report, due Friday after a delay caused by the government shutdown. The data is expected to clarify the pace of inflation and could influence the Fed’s stance on rate cuts.

Investors are already pricing in a 25-basis-point cut at the next Fed meeting, reflecting growing confidence that the central bank will ease policy amid slowing growth and cooling inflation pressures.

“We’ve seen a correction that is normal after the recent rally in gold and there’s still some downside pressure. We expect prices to consolidate thereafter and continue its uptrend,” said Brian Lan, Managing Director at GoldSilver Central.

He added that while the long-term outlook for gold remains positive, “in the short term investors have got to be cautious because the volatility is big.”

Gold remains resilient amid economic uncertainty

Despite Thursday’s slight decline, gold has risen about 56% since the start of 2025, hitting an all-time high of $4,381.21 per ounce earlier this week. Analysts attribute the surge to mounting geopolitical instability, expectations of monetary easing, and sustained central bank purchases, particularly from emerging economies seeking to hedge against currency volatility.

The latest movement underscores gold’s role as a safe-haven asset during times of economic uncertainty, with demand buoyed by persistent global tensions and uneven post-pandemic recovery patterns.

Broader implications

A stronger dollar typically limits gold’s appeal, but its recent performance suggests investors are maintaining positions amid fears of prolonged inflationary pressures and market instability. Analysts say that if the upcoming CPI report shows inflation moderating, it could accelerate the Fed’s rate-cut trajectory, potentially pushing gold higher once again.

As markets await the data, both traders and policymakers remain on edge, balancing optimism about easing inflation against concerns over economic stagnation and persistent fiscal strain in major economies.