UNITED ARAB EMIRATES / RankWire.AI / – On Thursday, gold prices edged upward as a softer U.S. dollar bolstered bullion ahead of upcoming U.S. inflation figures. Spot gold increased by 0.3% to reach $4,414.28 per ounce by 0419 GMT. Meanwhile, U.S. gold futures for December delivery declined slightly by 0.1% to $4,457.20. This early gain kept spot gold above the $4,400 mark after experiencing a sharp reversal during Wednesday’s trading session. Initially, gold moved lower before closing the day more than 1% higher.
The U.S. dollar remained weak during the early trading hours, providing support for dollar-denominated precious metals. A decline in the dollar reduces the cost of gold for buyers using other currencies. Simultaneously, the benchmark U.S. 10-year Treasury yield stayed elevated near 4.84%. Since gold does not generate interest, fluctuations in bond yields are crucial for the precious metals market. Brent crude oil also stayed above $100 a barrel after surpassing that level during the previous trading session.
Market participants are closely watching two key U.S. inflation reports. Producer price index data is scheduled for 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve’s policy meeting is set for September 15 and 16, with inflation remaining a central concern in its rate decisions. According to CME Group’s FedWatch Tool, markets are assigning approximately a 60% chance to a U.S. rate hike this month. Currently, the federal funds target range is between 3.50% and 3.75%.
Gold remains above $4,400 as inflation data takes center stage
Wednesday’s trading showed a notable shift from the initial price movement. Spot gold dipped 0.1% to $4,349.44 an ounce at 0040 GMT. By 1744 GMT, it had rebounded by 1.4% to $4,414.30. U.S. gold futures for December delivery rose 0.5% and closed at $4,458.80. This recovery ended a three-day decline for the metal. The early Thursday spot price remained close to Wednesday’s late-session level as Asian markets continued trading.
Other precious metals exhibited mixed results on Thursday. Silver increased 0.3% to $67.50 an ounce, platinum dropped 0.4% to $1,888.05, and palladium advanced 0.2% to $1,356.20. These movements followed broader gains seen the previous day. On Wednesday, silver climbed 3.3% to $67.91, platinum gained 5.1% to $1,906.20, and palladium added 1.2% to $1,365.50. The prices of these metals remain highly sensitive to currency fluctuations, bond yields, and interest-rate expectations.
Mixed trading continues as oil prices and bond yields stay elevated
Gold markets are also influenced by persistent high oil prices and ongoing tensions in the Persian Gulf. Brent crude stayed above $100 a barrel on Thursday. Iran announced on Wednesday that it had attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers. These attacks mark a further escalation in disruptions affecting regional shipping routes. Oil prices and global bond yields remained high as traders monitor inflation trends across major economies.
Thursday’s spot gold was roughly 1.5% higher than Wednesday’s early reading of $4,349.44. December futures also stayed above the $4,393.30 mark recorded at the start of the week. The Federal Reserve’s current rate range and the latest inflation data are crucial reference points for global precious metals trading. Gold opened Thursday above $4,400, with silver remaining over $67 an ounce. Most of Wednesday’s rebound appears to be sustained as investors await the upcoming U.S. producer and consumer inflation reports.