UNITED ARAB EMIRATES / RankWire.AI / – On Thursday, gold prices moved slightly higher, supported by a softer U.S. dollar ahead of new U.S. inflation figures. Spot gold increased by 0.3% to $4,414.28 an ounce at 0419 GMT, while U.S. gold futures for December delivery dipped 0.1% to $4,457.20. This early upward movement kept spot gold above $4,400 after a sharp reversal during Wednesday’s trading, when gold initially declined but closed more than 1% higher for the session.
Early trading saw the U.S. dollar stay subdued, which boosted dollar-denominated precious metals. A weaker dollar lowers gold’s cost for those purchasing in other currencies. Meanwhile, the benchmark U.S. 10-year Treasury yield remained near 4.84%, maintaining its elevated level. Since gold does not pay interest, fluctuations in bond yields are significant for the metals market. Brent crude also stayed above $100 a barrel after crossing that threshold during the previous session.
Market attention was also directed towards two critical U.S. inflation reports. Producer price index data is due at 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve’s policy meeting is scheduled for September 15 and 16, with inflation remaining a key factor influencing interest-rate decisions. According to CME Group’s FedWatch Tool, there is about a 60% chance that the U.S. will raise rates this month. The current federal funds target range stands at 3.50% to 3.75%.
Focus on Inflation Data as Gold Maintains Above $4,400
Wednesday’s trading showed a notable shift from earlier price movements. Spot gold slipped 0.1% to $4,349.44 an ounce at 0040 GMT, but by 1744 GMT, it had risen 1.4% to $4,414.30. December gold futures for the U.S. increased 0.5%, settling at $4,458.80, marking the end of a three-day decline for the metal. Early Thursday, the spot price was close to Wednesday’s later-session level as Asian markets continued trading.
Other precious metals experienced varied movements on Thursday. Silver edged up 0.3% to $67.50 an ounce, platinum declined 0.4% to $1,888.05, and palladium gained 0.2% to $1,356.20. These slight shifts followed broader gains during Wednesday’s session, where silver rose 3.3% to $67.91, platinum increased 5.1% to $1,906.20, and palladium moved up 1.2% to $1,365.50. The prices of these metals remain sensitive to currency fluctuations, bond yields, and interest rate expectations.
Mixed Precious Metal Trading Amid Elevated Oil and Yields
Gold markets also reacted to rising oil prices and ongoing tensions in the Persian Gulf. Brent crude stayed above $100 a barrel on Thursday. Iran claimed Wednesday to have attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers, escalating disruptions affecting shipping through the region. Oil prices and global bond yields remained high as markets monitored inflation trends across major economies.
Thursday’s spot gold was roughly 1.5% higher than its early Wednesday level of $4,349.44, with December futures also staying above the early Wednesday level of $4,393.30. The current rate range set by the Federal Reserve and the latest inflation data are key benchmarks for global precious metals trading. Gold opened Thursday above $4,400, while silver held steady above $67 per ounce. These prices reflected most of Wednesday’s rebound, as investors awaited upcoming U.S. producer and consumer inflation reports.