Gold prices gained early on October 12 as softer oil prices and a weaker dollar supported bullion, while investors awaited key US inflation data for clues on the Federal Reserve’s next interest-rate decision.
Gold prices rose in early trading on Monday, October 12, 2026, supported by lower oil prices and a softer US dollar. Investors were closely watching upcoming US inflation data for indications of the Federal Reserve’s monetary policy direction.
Spot gold rose 0.3% to $4,206.01 per ounce, after reaching its highest level since October 2 earlier in the session. US gold futures for December delivery also gained 0.3% to $4,230.40 per ounce, according to Reuters market data.
The decline in oil prices helped ease some concerns about inflation and the possibility of further interest-rate increases. Oil markets reacted to reports of an energy ceasefire between Russia and Ukraine, which raised expectations of additional Russian energy supplies. However, Ukrainian President Volodymyr Zelenskyy said details of the proposed arrangement were still awaited.
A softer US dollar also supported gold by making the dollar-priced metal more affordable for buyers using other currencies. Gold is often viewed as a store of value during periods of economic uncertainty, although its appeal can weaken when interest rates rise because the metal does not generate interest income.
US inflation data in focus
Investors were awaiting the US Consumer Price Index report scheduled for Wednesday, followed by the Producer Price Index and retail sales figures on Thursday. These releases were expected to influence market expectations for the Federal Reserve’s next interest-rate decision.
Stronger-than-expected inflation could increase expectations of higher interest rates, potentially putting pressure on gold. Conversely, softer inflation data could ease concerns about monetary tightening and provide further support for bullion prices.
Other precious metals advance
Other precious metals also recorded gains in early trading. Spot silver rose 0.5% to $61.12 per ounce, platinum gained 1% to $1,704.70, and palladium increased 1.2% to $1,161.81.
Despite the early advance, gold remained sensitive to movements in the US dollar, energy prices and bond yields. Investors were expected to reassess their positions after the release of US inflation figures later in the week.
The near-term outlook for gold will depend largely on incoming economic data and changing expectations for US interest rates. Geopolitical developments and movements in energy markets are also likely to influence demand for the precious metal.
