UNITED ARAB EMIRATES / RankWire.AI / – Gold prices moved slightly higher on Thursday as a softer US dollar bolstered the precious metal ahead of upcoming US inflation data. Spot gold increased by 0.3% to $4,414.28 per ounce by 0419 GMT. Meanwhile, US gold futures for December delivery dipped 0.1% to $4,457.20. The early gain maintained spot gold above the $4,400 mark after a sharp reversal during Wednesday’s trading session. The day initially saw gold decline before closing more than 1% higher in that session.
The US dollar remained subdued early in the trading day, lending support to dollar-denominated precious metals. A weaker dollar makes gold more affordable for buyers using other currencies. At the same time, the benchmark US 10-year Treasury yield stayed elevated near 4.84%. Since gold does not generate interest, fluctuations in bond yields are influential for the metals market. Brent crude oil also held above $100 a barrel after crossing that level in the previous session.
Market attention centered on two key US inflation reports. Producer price index data will be released at 1230 GMT on Thursday, with consumer inflation figures scheduled for Friday. The Federal Reserve’s upcoming meeting is set for September 15 and 16, with inflation remaining a primary factor in its interest rate decisions. According to CME Group’s FedWatch Tool, markets assign about 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 displayed a notable shift from early price movements. Initially, spot gold dipped 0.1% to $4,349.44 per ounce at 0040 GMT. By 1744 GMT, it had risen 1.4% to $4,414.30. US gold futures for December delivery gained 0.5%, settling at $4,458.80. This rally ended a three-day decline for bullion. Early Thursday, spot gold traded near Wednesday’s late-session level as Asian markets continued trading.
Other precious metals showed mixed results on Thursday. Silver’s spot price increased by 0.3% to $67.50 an ounce, while platinum dropped 0.4% to $1,888.05. Palladium rose 0.2% to $1,356.20. These movements followed broader gains seen in the previous session. On Wednesday, silver surged 3.3% to $67.91, platinum climbed 5.1% to $1,906.20, and palladium added 1.2% to $1,365.50. Currency movements, bond yields, and interest rate expectations continue to influence precious metals trading.
Mixed Trading Continues in Metals Amid Rising Oil and Bond Yields
Gold markets also reacted to higher oil prices and ongoing tensions in the Persian Gulf. Brent crude stayed above $100 a barrel on Thursday. Iran claimed Wednesday that it had attacked 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers. These incidents marked another escalation in disruptions affecting shipping routes in the region. Oil prices and global bond yields remained high as markets monitored inflation trends across major economies.
Thursday’s spot gold level was roughly 1.5% higher than its early Wednesday reading of $4,349.44. December futures also remained above the early Wednesday level of $4,393.30. The Federal Reserve’s current rate range and the latest inflation data continue to be crucial benchmarks for global precious metals trading. Gold opened Thursday above $4,400, with silver staying above $67 an ounce. Most of Wednesday’s rebound in prices persisted into Thursday as investors awaited the upcoming US producer and consumer inflation reports.