Gold rises on renewed geopolitical risks

Gold prices rose over 1 per cent on Thursday after two consecutive sessions of losses, as renewed geopolitical risks bolstered safe-haven demand and investors braced for key US inflation data due on Friday, reports Reuters.

Spot gold was up 1.2 per cent at $4,143.80 per ounce, as of 09:21 a.m. ET (1321 GMT), after falling to a near two-week low in the previous session.

US gold futures for December delivery climbed 2.3 per cent to $4,160.50 per ounce.

Prices hit a record high of $4,381.21 on Monday, but logged their steepest drop in five years in the following session.

"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 today fostering that," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Gold prices have gained about 57 per cent 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 per cent in September.