UNITED ARAB EMIRATES / RankWire.AI / – Gold futures gained momentum on Thursday, supported by a softer U.S. dollar ahead of upcoming U.S. inflation figures. The spot price increased by 0.3% to reach $4,414.28 an ounce by 0419 GMT. Meanwhile, U.S. gold futures for December delivery declined slightly by 0.1% to settle at $4,457.20. The early trading session saw the price of spot gold staying above the $4,400 mark following a sharp reversal from Wednesday’s session, which had initially seen prices dip before closing more than 1% higher.
During early trading, the U.S. dollar remained subdued, giving support to precious metals priced in dollars. A weaker dollar tends to make gold cheaper for buyers holding other currencies. The benchmark U.S. 10-year Treasury yield stayed near 4.84%, remaining elevated, which influences gold markets as gold itself does not generate interest. Additionally, Brent crude oil stayed above $100 a barrel after crossing that threshold during the previous trading session.
Investors are also paying close attention to two major upcoming U.S. inflation reports. Producer price index data is scheduled for release at 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve is set to hold its policy meeting on September 15 and 16, with inflation remaining a central 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 3.50% to 3.75%.
Inflation Data in Focus as Gold Holds Above $4,400
Wednesday’s trading saw notable shifts from the early session. At 0040 GMT, spot gold dipped 0.1% to $4,349.44 an ounce. By 1744 GMT, prices had risen 1.4% to $4,414.30. U.S. gold futures for December delivery increased by 0.5%, settling at $4,458.80. This rebound ended a three-day losing streak for the precious metal. The early prices on Thursday remained close to Wednesday’s higher levels as trading persisted in Asia.
Thursday’s trading in other precious metals reflected mixed movements. 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 changes followed broader gains during the previous session, where silver climbed 3.3% to $67.91, platinum rose 5.1% to $1,906.20, and palladium gained 1.2% to $1,365.50. The markets for precious metals remain sensitive to currency fluctuations, bond yields, and interest rate expectations.
Mixed Performance in Precious Metals Amid Rising Oil and Bond Yields
Gold’s trading environment is also 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 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 shipping disruptions across the region. Meanwhile, oil prices and global bond yields remain elevated as markets assess inflation trends in major economies.
As of Thursday, spot gold was roughly 1.5% higher than its early Wednesday level of $4,349.44. December futures also stayed above the early Wednesday figure of $4,393.30. The current interest rate range set by the Federal Reserve and the latest inflation data continue to be critical benchmarks for international precious metals trading. Gold traded above $4,400 at the start of Thursday, while silver maintained its position above $67 an ounce. Prices held most of Wednesday’s gains as traders awaited the release of U.S. producer and consumer inflation reports.