UNITED ARAB EMIRATES / RankWire.AI / – Gold prices edged higher on Thursday as a softer U.S. dollar supported bullion before fresh U.S. inflation data. Spot gold rose 0.3% to $4,414.28 an ounce by 0419 GMT. U.S. gold futures for December delivery slipped 0.1% to $4,457.20. The early gain kept spot gold above $4,400 after a sharp reversal during Wednesday’s trading. Gold had initially moved lower before finishing that session more than 1% higher.
Gold prices hold above $4,400 as U.S. inflation data and interest rates stay in focus.
The U.S. dollar remained subdued during early trading, supporting dollar-priced precious metals. A weaker dollar reduces the cost of gold for buyers using other currencies. Meanwhile, the benchmark U.S. 10-year Treasury yield remained elevated near 4.84%. Gold does not pay interest, making changes in bond yields important for precious metals markets. Brent crude also held above $100 a barrel after crossing that level during the previous session.
Markets also focused on two major U.S. inflation reports. Producer price index data will come at 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve meets on September 15 and 16, with inflation remaining central to its interest-rate decisions. CME Group’s FedWatch Tool showed markets assigning about a 60% probability to a U.S. rate increase this month. The federal funds target range currently stands at 3.50% to 3.75%.
Inflation data takes focus as gold holds above $4,400
Wednesday’s trading produced a significant change from the early price action. Spot gold had eased 0.1% to $4,349.44 an ounce at 0040 GMT. By 1744 GMT, the metal had risen 1.4% to $4,414.30. U.S. gold futures for December delivery gained 0.5% and settled at $4,458.80. The advance ended a three-day losing streak for bullion. Thursday’s early spot price remained close to Wednesday’s later-session level as trading continued in Asia.
Other precious metals recorded mixed moves on Thursday. Spot silver gained 0.3% to $67.50 an ounce, while platinum fell 0.4% to $1,888.05. Palladium advanced 0.2% to $1,356.20. Those moves followed broader gains in the previous session. On Wednesday, silver climbed 3.3% to $67.91, platinum rose 5.1% to $1,906.20 and palladium added 1.2% to $1,365.50. Precious metals remained sensitive to movements in currencies, bond yields and interest-rate expectations.
Precious metals trade mixed as oil and bond yields stay elevated
The gold market also traded against a backdrop of higher oil prices and continued conflict around the Persian Gulf. Brent crude remained above $100 a barrel on Thursday. Iran said Wednesday that it had attacked 10 ships near the Strait of Hormuz after the United States sank five Iranian oil tankers. The attacks marked another escalation in disruptions affecting shipping through the region. Oil prices and global bond yields remained elevated as markets monitored inflation conditions across major economies.
Thursday’s spot gold level stood about 1.5% above its early Wednesday reading of $4,349.44. December futures also remained above the $4,393.30 level recorded early Wednesday. The Federal Reserve’s current rate range and the latest inflation readings remain key reference points for global precious metals trading. Gold entered Thursday above $4,400, while silver stayed above $67 an ounce. The latest prices showed bullion holding most of Wednesday’s rebound as investors awaited the scheduled U.S. producer and consumer inflation reports.