UNITED ARAB EMIRATES / RankWire.AI / – On Thursday, gold prices moved slightly higher as a softer U.S. dollar bolstered the precious metal before the release of new U.S. inflation data. Spot gold increased by 0.3% to $4,414.28 per ounce at 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 mark after a notable reversal during Wednesday’s trading session. Gold initially declined but finished that day more than 1% higher.
Early trading saw the U.S. dollar remain subdued, which supported dollar-denominated precious metals. A weakened dollar lowers the cost of gold for buyers using other currencies. At the same time, the benchmark U.S. 10-year Treasury yield stayed elevated near 4.84%. Since gold does not pay interest, fluctuations in bond yields significantly influence the metals market. Brent crude also stayed above $100 a barrel after crossing this level during the previous session.
Investors are also keeping an eye on two important 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’s upcoming meeting on September 15 and 16 continues to focus on inflation, which remains a critical factor in its interest-rate decisions. According to CME Group’s FedWatch Tool, markets are pricing in about a 60% chance of a U.S. rate hike this month. Currently, the federal funds target range is 3.50% to 3.75%.
Inflation Data in Focus as Gold Clings to Above $4,400
Wednesday’s trading marked a notable shift from the initial price movement. Spot gold dipped 0.1% to $4,349.44 per ounce at 0040 GMT. By 1744 GMT, prices had risen by 1.4% to $4,414.30. U.S. gold futures for December delivery increased by 0.5%, settling at $4,458.80. This upward move ended a three-day decline for bullion. The early Thursday spot price remained close to Wednesday’s later-session level as Asian markets continued trading.
On Thursday, other precious metals exhibited mixed performance. Silver spot prices gained 0.3% to $67.50 an ounce, while platinum declined by 0.4% to $1,888.05. Palladium edged up 0.2% to $1,356.20. These movements followed broader gains in the previous session, where silver rose 3.3% to $67.91, platinum increased 5.1% to $1,906.20, and palladium added 1.2% to $1,365.50. The prices of these metals remain sensitive to currency fluctuations, bond yields, and interest rate expectations.
Gold and Other Precious Metals Trade Mixed Amid Rising Oil and Bond Yields
The gold market also operates within a context of rising oil prices and ongoing tensions in the Persian Gulf. Brent crude stayed above $100 a barrel on Thursday. Iran claimed on Wednesday that it had attacked 10 ships near the Strait of Hormuz after the United States sank five Iranian oil tankers. These incidents marked another escalation in the disruptions affecting regional shipping. Oil prices and global bond yields remained high as markets tracked inflation trends across major economies.
Thursday’s spot gold was roughly 1.5% higher than its early Wednesday level of $4,349.44. December futures prices also stayed above the early Wednesday level of $4,393.30. The current rate range set by the Federal Reserve and the latest inflation reports continue to serve as key reference points for global precious metals trading. Gold stayed above $4,400 on Thursday, with silver remaining above $67 an ounce. Prices held most of Wednesday’s rebound as investors awaited the upcoming U.S. producer and consumer inflation data.