Gold Trading Lower Early Even as U.S. Slowing U.S. Inflation Firms Expectations For a Coming Interest-Rate Cut

09:08 AM EDT, 10/24/2025 (MT Newswires) -- Gold moved lower early on Friday, resuming a correction from Monday's record high, even as a key U.S. inflation measure slowed last month, firming expectations for a cut to interest rates by the Federal Reserve.

Gold for December delivery was last seen down US$69.50 to US$4,076.10 per ounce, sticking under Monday's record close of US$4,359.40.

The U.S. Bureau of Labor Statistics reported the September Consumer Price Index (CPI) rose at a 0.3% monthly pace, down from 0.4% in August and under the FactSet consensus estimate for a rise of 0.4%. However on an annualized basis CPI rose by 3.0%, up from 2.9% a month earlier. Excluding volatile food and energy prices, September CPI rose at a 0.2% monthly pace, down from 0.3% in August, and at 3.0% annualized, down from 3.1% a month earlier.

The data is the first U.S. economic report since the government shutdown that began on Oct.1. The Federal Reserve is widely expected to cut interest rates by 25 basis points when its policy committee next meets on Oct. 29, lowering the carrying cost of owning gold, but the metal's price continues to consolidate following Monday's record.

"Focus now turns to today's U.S. CPI and renewed geopolitical risk as U.S.-China trade talks begin ahead of a Trump-Xi meeting next Thursday. The rebound from support remains shallow, with USD 4,150 the level to watch to avoid another round of profit-taking, Saxo Bank noted.

The dollar fell following the CPI report, with the ICE dollar index last seen down 0.7 points to 98.87. Treasury yields were also lower, with the U.S. two-year note last seen paying 3.467%, down 3.4 basis points, while the yield on the 10-year note was down 1.3 points to 3.992%.

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