UNITED ARAB EMIRATES / RankWire.AI / – Gold prices moved higher on Thursday, supported by a softer U.S. dollar, ahead of new U.S. inflation figures. The spot gold price increased by 0.3% to $4,414.28 per ounce at 0419 GMT, while U.S. gold futures for December delivery declined slightly by 0.1% to $4,457.20. This early upward movement helped keep spot gold above the $4,400 level after a sharp reversal during Wednesday’s trading session. Initially, gold prices had dropped but recovered to end that day more than 1% higher.
The U.S. dollar remained subdued in the early hours, bolstering precious metals priced in dollars. A weaker dollar makes gold more affordable for buyers in other currencies. Meanwhile, the benchmark U.S. 10-year Treasury yield stayed elevated around 4.84%. Since gold does not generate interest, bond yields are influential for the metals market. Brent crude oil also stayed above $100 a barrel after crossing this threshold in the previous session.
Market attention is also on two upcoming 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 policy meeting is scheduled for September 15 and 16, with inflation remaining a key factor in its decision-making on interest rates. According to CME Group’s FedWatch Tool, markets assign roughly a 60% chance of a U.S. rate hike this month. Currently, the federal funds target range is set at 3.50% to 3.75%.
Focus on Inflation Data as Gold Clings to Above $4,400
Wednesday’s trading experienced a notable shift from the morning’s price action. At 0040 GMT, spot gold had dipped 0.1% to $4,349.44 an ounce. By 1744 GMT, it had climbed 1.4% to $4,414.30. U.S. gold futures for December delivery increased by 0.5%, closing at $4,458.80. This rally ended a three-day decline for gold. The early Thursday spot price remained near the levels seen later in Wednesday’s session as trading continued in Asia.
Other precious metals showed mixed results on Thursday. Spot silver gained 0.3% to $67.50 an ounce, while platinum declined 0.4% to $1,888.05. Palladium rose by 0.2% to $1,356.20. These movements followed broader gains in the previous session, where silver increased 3.3% to $67.91, platinum rose 5.1% to $1,906.20, and palladium advanced 1.2% to $1,365.50. Overall, precious metals remain sensitive to fluctuations in currencies, bond yields, and interest rate expectations.
Mixed Trading Continues in Precious Metals Amid Rising Oil and Bond Yields
The gold market is also reacting to elevated oil prices and ongoing conflicts in the Persian Gulf region. Brent crude stayed above $100 a barrel on Thursday. Iran announced Wednesday that it had attacked 10 ships near the Strait of Hormuz after the United States sank five Iranian oil tankers. These incidents mark an escalation in regional disruptions affecting shipping. Both oil prices and global bond yields remain high as markets observe inflation trends across major economies.
Thursday’s spot gold price was approximately 1.5% higher than its early Wednesday level of $4,349.44. December futures also stayed above the $4,393.30 mark recorded earlier that day. The Federal Reserve’s current rate range and the latest inflation reports continue to be crucial indicators for global precious metals trading. Gold opened Thursday above $4,400, with silver remaining above $67 an ounce. The current prices indicate bullion has maintained much of Wednesday’s rebound as investors await the upcoming U.S. producer and consumer inflation data.