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

Spot gold was up 1% at $4,132.76 per ounce, as of 01:49 p.m. EST, after falling to a near two-week low in the previous session.

U.S. gold futures for December delivery settled 2% higher at $4,145.60 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.

GOLD UP 57% IN 2025

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

Gold prices have gained about 57% this year, driven by geopolitical tensions, economic uncertainty, expectations of rate cuts, and sustained central bank buying.

U.S. 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 U.S. 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% in September. Markets have already priced in a 25-basis-point rate cut, with another rate cut in December.

Gold, a non-yielding asset, tends to benefit in low-interest-rate environments.

GOLD SEEN TOPPING $5K IN 2026

Meanwhile, JP Morgan forecast gold prices could reach an average of $5,055/oz by the fourth quarter of 2026, on assumptions that investor demand and central bank buying will average around 566 tonnes per quarter next year.

Elsewhere, spot silver rose 1.1% to $49.07 per ounce, platinum gained 0.5% to $1,629.44, while palladium rose 0.4% to $1,453.90.