Gold waits at £3,235 an ounce as US inflation data puts an October Fed hike in focus

Gold is sitting at around £3,235 a troy ounce this weekend, or roughly £104 a gram before dealer costs, according to LivePriceOfGold.com. Markets are closed until Monday, so prices are holding at Friday's levels, with spot near $4,285 in dollar terms after a losing week.

The big test comes on Wednesday 30 September, when the US publishes its August figures for PCE inflation, the Federal Reserve's preferred price measure. According to Discovery Alert, forecasts point to annual PCE inflation rising to about 3.78 per cent. The same analysis notes that CME FedWatch pricing puts the chance of a Fed rate rise at its 28 October meeting at around 73 per cent, up from under 7 per cent in mid August.

That matters because gold pays no interest. When rates rise, cash and bonds look more rewarding by comparison, which tends to weigh on the price. A hotter than expected reading would likely firm up hike bets, while a softer one could give gold some relief. Traders will also watch US jobs, consumer confidence and GDP data through the week.

For UK buyers, the spot price is only the starting point. Investment gold coins and bars are VAT free, but dealer premiums and delivery charges vary, so comparing the all-in price is the surest way to find value. This is market information, not financial advice.