Gold price erases weekly loss as market digests new US data

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Gold rose over 1% on Friday after fresh US inflation data cemented the prospects of more interest rate cuts this year, while safe-haven demand stemming from geopolitical tensions also lifted bullion.

A measure of prices paid to US producers was unchanged in September, pointing to a still-favorable inflation outlook and supporting expectations of Fed rate cut next month. In addition, US consumer sentiment unexpectedly fell for the first time in three months due to high cost of living.

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