UNITED ARAB EMIRATES / RankWire.AI / – Gold prices moved slightly upward on Thursday, supported by a softer U.S. dollar ahead of upcoming U.S. inflation figures. Spot gold increased by 0.3% to $4,414.28 per ounce by 0419 GMT. Meanwhile, U.S. gold futures for December delivery dipped 0.1% to $4,457.20. The early rise kept spot gold above $4,400 after a notable reversal during Wednesday’s trading session. Initially, gold had declined before ending that day more than 1% higher.
Early trading saw the U.S. dollar remain subdued, which in turn supported precious metals priced in dollars. A softer dollar makes gold cheaper 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 influence precious metals markets. Brent crude oil also stayed above $100 a barrel after crossing that threshold during the previous session.
Market participants are closely watching two major U.S. inflation reports. The producer price index data will be released at 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve will convene on September 15 and 16, with inflation remaining a central factor in 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. Currently, the federal funds target range is set between 3.50% and 3.75%.
Focus on Inflation Data as Gold Maintains Above $4,400
Wednesday’s trading saw a marked shift from the early price movements. Spot gold declined by 0.1% to $4,349.44 an ounce at 0040 GMT. By 1744 GMT, the metal 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 gain broke a three-day losing streak for the metal. Early Thursday, the spot price remained near Wednesday’s late-session level as Asian markets continued trading.
Other precious metals experienced mixed performances on Thursday. Silver rose 0.3% to $67.50 an ounce, platinum fell 0.4% to $1,888.05, and palladium increased 0.2% to $1,356.20. These movements followed broader gains seen in the previous session, where silver climbed 3.3% to $67.91, platinum gained 5.1% to $1,906.20, and palladium rose 1.2% to $1,365.50. Currency fluctuations, bond yields, and interest-rate expectations continue to influence precious metals trading.
Mixed Trading in Precious Metals Amid Rising Oil and Bond Yields
The gold market also navigated a landscape of rising oil prices and ongoing tensions in the Persian Gulf. Brent crude remained above $100 a barrel on Thursday. Iran reported on Wednesday that it had targeted 10 ships near the Strait of Hormuz after the United States sank five Iranian oil tankers. These incidents marked another escalation in disruptions affecting regional shipping routes. Oil prices and global bond yields stayed elevated as markets monitored inflation trends across major economies.
On Thursday, spot gold traded roughly 1.5% higher than its early Wednesday level of $4,349.44. December futures also stayed above the early Wednesday level of $4,393.30. The current interest rate environment set by the Federal Reserve and the latest inflation reports remain critical for global precious metals trading. Gold remained above $4,400, and silver stayed above $67 an ounce as bullion prices mostly retained Wednesday’s rebound, with investors awaiting the upcoming U.S. producer and consumer inflation figures.