UNITED ARAB EMIRATES / RankWire.AI / – On Thursday, gold prices moved slightly higher, buoyed by a softer US dollar ahead of upcoming U.S. inflation figures. The spot price increased by 0.3% to $4,414.28 per ounce as of 0419 GMT. Meanwhile, U.S. gold futures for December delivery dipped 0.1% to $4,457.20. The early gains helped keep spot gold above the $4,400 level after a sharp reversal during Wednesday’s trading session. The market initially saw prices dip before closing more than 1% higher that day.
Early trading saw the US dollar remain subdued, bolstering dollar-denominated precious metals. A weaker dollar makes gold more affordable for buyers using other currencies. Additionally, the benchmark U.S. 10-year Treasury yield stayed near 4.84%, keeping bond yields elevated. Gold, which does not accrue interest, remains sensitive to changes in yields. Brent crude oil also stayed above $100 a barrel after crossing that threshold during the previous session.
Market participants are closely watching two key U.S. inflation reports. Producer price index data is scheduled for release at 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve’s upcoming meetings on September 15 and 16 keep inflation at the forefront of policy considerations. According to CME Group’s FedWatch Tool, markets assign roughly a 60% chance of a U.S. rate hike this month. The current federal funds target rate is set between 3.50% and 3.75%.
Focus on Inflation Data as Gold Holds Above $4,400
Wednesday’s trading showed a significant shift from earlier in the day. Spot gold slipped 0.1% to $4,349.44 an ounce at 0040 GMT, but by 1744 GMT, it had rallied 1.4% to $4,414.30. U.S. gold futures for December gained 0.5%, settling at $4,458.80, ending a three-day decline for the metal. Thursday’s early spot price remained near Wednesday’s late-session level as Asian markets continued trading.
Other precious metals experienced mixed movements. Silver rose 0.3% to $67.50 an ounce, platinum fell 0.4% to $1,888.05, and palladium increased 0.2% to $1,356.20. These shifts followed broader gains on Wednesday, when silver climbed 3.3% to $67.91, platinum increased 5.1% to $1,906.20, and palladium added 1.2% to $1,365.50. Currency fluctuations, bond yields, and interest-rate outlooks continue to influence precious metals trading.
Mixed Metals Movements Amid Elevated Oil and Bond Yields
The gold market also responded to rising oil prices and ongoing tensions in the Persian Gulf. Brent crude stayed above $100 a barrel on Thursday. Iran reported attacking 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers, marking another escalation in shipping disruptions in the region. Oil prices and global bond yields remained high as markets monitored inflation prospects across major economies.
Thursday’s spot gold was roughly 1.5% higher than Wednesday’s early level of $4,349.44, with December futures remaining above the $4,393.30 mark set early that day. The key reference points for global precious metals trading continue to be the Federal Reserve’s rate range and the latest inflation data. Gold closed Thursday above $4,400, with silver staying over $67 per ounce. Prices have maintained most of Wednesday’s rebound as investors await upcoming U.S. producer and consumer inflation reports.