UNITED ARAB EMIRATES / RankWire.AI / – On Thursday, gold prices moved slightly higher as a softer U.S. dollar provided support for the precious metal ahead of upcoming U.S. inflation figures. Spot gold increased by 0.3%, reaching $4,414.28 per ounce by 0419 GMT. Meanwhile, U.S. gold futures for December delivery declined marginally by 0.1% to $4,457.20. The early gains kept spot gold above the $4,400 level following a sharp reversal seen during Wednesday’s trading session. Initially declining, gold recovered to finish the day more than 1% higher.
The U.S. dollar maintained a subdued tone during early trading, bolstering dollar-denominated precious metals. A weaker dollar makes gold more affordable for buyers using other currencies. At the same time, the benchmark U.S. 10-year Treasury yield stayed near 4.84%, remaining elevated. Since gold does not pay interest, fluctuations in bond yields are significant for the precious metals market. Brent crude oil also held above $100 a barrel after crossing that threshold during the previous session.
Market participants are also closely watching 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’s upcoming meetings are scheduled for September 15 and 16, with inflation still at the heart of its interest-rate decisions. 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 remains between 3.50% and 3.75%.
Inflation statistics draw focus as gold maintains position above $4,400
Wednesday’s trading session saw a notable shift from early price movements. At 0040 GMT, spot gold had dipped 0.1% to $4,349.44 per ounce. By 1744 GMT, prices had rebounded 1.4% to $4,414.30. U.S. gold futures for December increased by 0.5%, closing at $4,458.80. This rally ended a three-day losing streak for gold. Early Thursday trading in Asia kept the spot price close to the levels seen late Wednesday.
Other precious metals experienced mixed performances on Thursday. Silver saw a 0.3% rise to $67.50 per ounce, while platinum declined by 0.4% to $1,888.05. Palladium gained 0.2%, reaching $1,356.20. These movements followed broader gains on Wednesday, when silver surged 3.3% to $67.91, platinum increased 5.1% to $1,906.20, and palladium rose 1.2% to $1,365.50. The prices of these metals remain sensitive to currency fluctuations, bond yields, and interest-rate expectations.
Mixed trading in precious metals amid high oil prices and bond yields
Gold’s performance also reflected an environment of rising oil prices and ongoing tensions 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, marking another escalation in regional shipping disruptions. Oil prices and global bond yields continued to stay high as markets closely monitor inflation trends across major economies.
Thursday’s spot gold was approximately 1.5% above its early Wednesday level of $4,349.44. December futures also remained above the early Wednesday level of $4,393.30. Key reference points for global precious metals trading include the Federal Reserve’s current rate range and the latest inflation data. Gold traded above $4,400 at the start of Thursday, while silver held above $67 per ounce. Most of Wednesday’s rebound was sustained into Thursday as investors awaited the upcoming U.S. producer and consumer inflation reports.