Gold tumbles as traders book profits ahead of key US inflation data
The post Gold tumbles as traders book profits ahead of key US inflation data appeared on BitcoinEthereumNews.com.
Gold price (XAU/USD) edges lower below $4,100 during the early Asian trading hours on Thursday. The precious metal has faced a sharp sell-off in the previous sessions on easing tensions between the United States (US) and China. Traders also book profits ahead of key US inflation data due on Friday. Furthermore, analysts believe that the end of the Diwali festival in India, the world’s second-largest gold consumer, might reduce physical demand and drag the price lower. On the other hand, the ongoing US government shutdown and geopolitical tensions could boost the Gold price, as it is viewed as a safe-haven asset in times of uncertainty. The speculation about further interest rate cuts by the Federal Reserve (Fed) could underpin the yellow metal. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal. Traders will closely monitor the developments surrounding the US-China trade talks, as their trade representatives are scheduled to meet late this week ahead of a planned meeting between Chinese leader Xi Jinping and US President Donald Trump next week. The release of the US September Consumer Price Index (CPI) inflation data will be in the spotlight later on Friday due to the government shutdown-driven data drought. If the report shows a hotter-than-expected outcome, this could lift the US Dollar (USD) and weigh on the USD-denominated commodity price in the near term. Daily Digest Market Movers: Gold extends the decline as traders continue to book profits Gold experienced historic gains in 2025, with more than a 50% rise, surpassing previous volatile periods such as after the September 11 attacks, the 2008 financial crisis, or even the Covid-19 pandemic. The US government shutdown has entered its fourth week with no resolution in sight. The Senate is expected to vote again on a funding bill, though it’s likely…
Filed under: News - @ October 23, 2025 3:26 am