UNITED ARAB EMIRATES / RankWire.AI / – Gold prices experienced modest gains on Thursday, supported by a softer US dollar as markets awaited new US inflation figures. The spot price of gold increased by 0.3% to reach $4,414.28 an ounce at 0419 GMT. Meanwhile, US gold futures for December delivery declined slightly by 0.1% to settle at $4,457.20. This early upward movement helped keep spot gold above the $4,400 level after a sharp reversal during Wednesday’s trading session. The metal initially moved lower but ultimately closed more than 1% higher for the day.
The US dollar stayed subdued in early trading hours, which bolstered precious metals priced in dollars. A weaker dollar makes gold more affordable for buyers using other currencies, supporting its price. The benchmark US 10-year Treasury yield held near 4.84%, remaining elevated. Since gold does not accrue interest, shifts in bond yields are crucial for its market performance. Brent crude oil also stayed above $100 a barrel after crossing that mark during the previous trading session.
Market participants are also paying close attention to two upcoming US inflation reports. Producer price index data is scheduled for release at 1230 GMT on Thursday, with consumer inflation figures following on Friday. The Federal Reserve’s meeting is set for September 15 and 16, with inflation figures remaining a key factor in its interest rate decisions. According to CME Group’s FedWatch Tool, there is approximately a 60% chance of a US rate hike this month. The current federal funds target range is 3.50% to 3.75%.
Inflation Data in Focus as Gold Maintains Above $4,400
Wednesday’s trading showed a notable shift from early session movements. Initially, spot gold dipped by 0.1% to $4,349.44 an ounce at 0040 GMT. However, by 1744 GMT, it had rebounded 1.4% to $4,414.30. US December gold futures increased by 0.5%, closing at $4,458.80. This recovery ended a three-day decline for gold. The early Thursday spot price remained close to Wednesday’s later-session level as Asian markets continued trading.
On Thursday, other precious metals displayed mixed results. Silver rose 0.3% to $67.50 an ounce, platinum declined 0.4% to $1,888.05, and palladium moved up 0.2% to $1,356.20. These movements followed broader gains recorded on Wednesday, with silver climbing 3.3% to $67.91, platinum increasing 5.1% to $1,906.20, and palladium adding 1.2% to $1,365.50. The prices of precious metals remain highly sensitive to currency fluctuations, bond yields, and interest-rate expectations.
Gold and Other Metals See Mixed Trading Amid Rising Oil and Bond Yields
The gold market’s performance was influenced by rising oil prices and ongoing tensions in the Persian Gulf region. Brent crude stayed above $100 a barrel on Thursday. Iran claimed on Wednesday to have attacked 10 ships near the Strait of Hormuz following the US sinking five Iranian oil tankers. These incidents signaled another escalation in regional disruptions affecting shipping lanes. Oil prices and global bond yields remained high as investors monitored inflation trends across major economies.
Thursday’s spot gold prices were roughly 1.5% above the early Wednesday level of $4,349.44. December futures also stayed above the $4,393.30 mark recorded in early trading. The Federal Reserve’s current rate range and the latest inflation data continue to serve as critical reference points for the global precious metals markets. Gold traded above $4,400 as Thursday unfolded, with silver maintaining above $67 an ounce. Most of Wednesday’s rebound in bullion prices persisted into Thursday, as investors awaited upcoming US producer and consumer inflation reports.