UNITED ARAB EMIRATES / RankWire.AI / – Gold prices moved slightly higher on Thursday, with spot gold increasing by 0.3% to $4,414.28 per ounce at 0419 GMT, bolstered by a softer U.S. dollar ahead of new U.S. inflation figures. 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 following a sharp reversal during Wednesday’s trading session. After initially declining, gold closed more than 1% higher in that session.
During early trading, the U.S. dollar remained relatively subdued, which supported precious metals priced in dollars. A weaker dollar makes gold cheaper for buyers using other currencies. Meanwhile, the benchmark U.S. 10-year Treasury yield stayed near 4.84%, remaining elevated. Since gold does not generate interest, movements in bond yields are particularly significant for the precious metals market. Brent crude oil also stayed above $100 a barrel after surpassing that mark in the previous session.
Market attention is also focused on two key U.S. inflation reports. Producer price index data is expected at 1230 GMT on Thursday, with consumer inflation figures due on Friday. The Federal Reserve will meet on September 15 and 16, with inflation still a primary concern in their interest rate decisions. According to CME Group’s FedWatch Tool, markets currently assign about a 60% probability to a U.S. rate hike this month. The current federal funds target range is between 3.50% and 3.75%.
Inflation Data in Focus as Gold Holds Above $4,400
Wednesday’s trading saw a notable shift from early price movements. Spot gold initially declined 0.1% to $4,349.44 an ounce at 0040 GMT. By 1744 GMT, it had recovered, rising 1.4% to $4,414.30. U.S. gold futures for December delivery gained 0.5%, settling at $4,458.80. This marked the end of a three-day decline for the precious metal. Early Thursday, the spot price remained near Wednesday’s later-session level as Asian markets continued trading.
Other precious metals experienced mixed results on Thursday. Silver increased by 0.3% to $67.50 an ounce, platinum decreased by 0.4% to $1,888.05, and palladium rose by 0.2% to $1,356.20. These movements followed broader gains in the previous session, where silver surged 3.3% to $67.91, platinum climbed 5.1% to $1,906.20, and palladium added 1.2% to $1,365.50. The prices of these metals remain highly sensitive to fluctuations in currencies, bond yields, and interest-rate expectations.
Mixed Trading for Precious Metals Amid Elevated Oil and Bond Yields
The gold market continues to be influenced by rising oil prices and ongoing tensions in the Persian Gulf. Brent crude stayed above $100 a barrel on Thursday. On Wednesday, Iran claimed responsibility for attacking 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers. These incidents represent a further escalation of disruptions affecting regional shipping. Oil prices and global bond yields remain high as markets monitor inflation developments across major economies.
Thursday’s spot gold was approximately 1.5% higher than its early Wednesday level of $4,349.44. December futures also stayed above the $4,393.30 mark from early Wednesday. The Federal Reserve’s current rate range and the latest inflation reports continue to be key benchmarks for international precious metals trading. Gold opened Thursday above $4,400, with silver also maintaining levels above $67 an ounce. Most of Wednesday’s rebound persisted in Thursday’s prices as investors await upcoming U.S. producer and consumer inflation data.