UNITED ARAB EMIRATES / RankWire.AI / – Gold prices saw a slight increase on Thursday, buoyed by a softer U.S. dollar as traders awaited new U.S. inflation figures. Spot gold climbed 0.3% to reach $4,414.28 an ounce by 0419 GMT. Meanwhile, U.S. gold futures for December delivery dipped 0.1% to settle at $4,457.20. The early rise helped keep spot gold above the $4,400 level after a sharp reversal during Wednesday’s trading session. Earlier, gold initially moved lower but then finished that day more than 1% higher.
During early trading, the U.S. dollar remained subdued, supporting precious metals priced in dollars. 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 elevated near 4.84%. Since gold does not pay interest, shifts in bond yields are important for the precious metals markets. Brent crude oil also continued to trade above $100 a barrel after surpassing that level in the previous session.
Market participants are also focused on two major U.S. inflation reports. The producer price index data is scheduled for 1230 GMT on Thursday. This will be followed by consumer inflation figures on Friday. The Federal Reserve’s upcoming meeting is set for September 15 and 16, with inflation remaining a key factor in its interest-rate decisions. According to CME Group’s FedWatch Tool, markets assign about a 60% chance of a U.S. rate hike this month. The current federal funds target range is 3.50% to 3.75%.
Inflation Reports Drive Focus as Gold Holds Steady Above $4,400
Wednesday’s trading showed a notable shift from the initial price action. Spot gold decreased slightly by 0.1% to $4,349.44 an ounce at 0040 GMT. By 1744 GMT, prices had risen 1.4% to $4,414.30. U.S. gold futures for December delivery increased 0.5% and closed at $4,458.80. This rally ended a three-day decline for the metal. On Thursday morning, the spot price remained close to Wednesday’s later-session levels as trading continued in Asia.
Other precious metals experienced mixed movements on Thursday. Spot silver gained 0.3% to $67.50 an ounce, while platinum dipped 0.4% to $1,888.05. Palladium moved up 0.2% to $1,356.20. These changes 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 added 1.2% to $1,365.50. The prices of precious metals continue to be sensitive to currency fluctuations, bond yields, and interest-rate expectations.
Mixed Trading in Precious Metals Amid Rising Oil and Bond Yields
Gold prices are also influenced by higher oil prices and ongoing tensions around the Persian Gulf. Brent crude remained above $100 a barrel on Thursday. Iran claimed Wednesday that it had attacked 10 ships near the Strait of Hormuz after the United States sank five Iranian oil tankers. These incidents mark another escalation in regional disruptions affecting maritime shipping. Oil prices and global bond yields stayed elevated as markets kept an eye on inflation trends across major economies.
Thursday’s spot gold was roughly 1.5% higher than Wednesday’s early reading of $4,349.44. December futures also remained above the early Wednesday level of $4,393.30. The current rate range set by the Federal Reserve and recent inflation data are key reference points for global precious metals trading. Gold remained above $4,400, while silver stayed above $67 an ounce. Most of Wednesday’s rebound was retained in Thursday’s prices, as investors awaited upcoming U.S. producer and consumer inflation reports.