UNITED ARAB EMIRATES / RankWire.AI / – Gold prices moved higher on Thursday, buoyed by a softer U.S. dollar ahead of key 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 dipped 0.1% to $4,457.20. This early upward movement helped keep spot gold above the $4,400 mark after a notable reversal during Wednesday’s trading session. Initially declining, gold closed that day over 1% higher than its previous level.
The U.S. dollar stayed subdued in early trading, which supported precious metals priced in dollars. A softer dollar lowers the cost of gold for buyers using other currencies. At the same time, the benchmark U.S. 10-year Treasury yield remained near 4.84%, maintaining an elevated level. Since gold does not generate interest, fluctuations in bond yields are significant for its market performance. Brent crude oil also stayed above $100 a barrel after crossing that threshold during the prior session.
Investors are also paying close attention to two key U.S. inflation reports. Producer price index data will be released at 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve convenes on September 15 and 16, with inflation remaining a critical factor in its interest-rate decisions. According to CME Group’s FedWatch Tool, markets are pricing in roughly a 60% chance of a U.S. rate hike this month. Currently, the federal funds target range is between 3.50% and 3.75%.
Market Focus on Inflation Data as Gold Stays Above $4,400
Wednesday’s trading marked a notable shift from earlier price movements. Spot gold initially declined by 0.1% to $4,349.44 an ounce at 0040 GMT. However, by 1744 GMT, it had rebounded by 1.4% to $4,414.30. U.S. gold futures for December delivery rose by 0.5%, settling at $4,458.80. This rally broke a three-day decline for the precious metal. As Thursday’s trading began, the early spot price hovered near Wednesday’s late-session level, with activity continuing in Asia.
Other precious metals experienced mixed moves on Thursday. Silver gained 0.3% to $67.50 an ounce, platinum slipped 0.4% to $1,888.05, and palladium edged up 0.2% to $1,356.20. These changes followed broader gains on the previous day, when silver increased by 3.3% to $67.91, platinum rose 5.1% to $1,906.20, and palladium gained 1.2% to $1,365.50. Overall, precious metals remain highly sensitive to currency, bond yield, and interest-rate fluctuation trends.
Precious Metals See Divergent Trends Amid Rising Oil and Bond Yields
The gold market also faced a backdrop of rising 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, marking another escalation in regional disruptions impacting shipping. Additionally, oil prices and global bond yields remained elevated as markets continued monitoring 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 trading above the $4,393.30 level set earlier in the week. The current interest rate range set by the Federal Reserve, along with the latest inflation data, continues to be a key reference point for global precious metals trading. Gold managed to stay above $4,400 on Thursday, while silver maintained its position above $67 an ounce. The latest prices showed bullion holding most of Wednesday’s gains as traders awaited the upcoming U.S. producer and consumer inflation reports.
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