Watch · Todays Trend
Gold inched higher on Thursday, supported by a weaker dollar, as market participants awaited key U.S. inflation data that could influence the Federal Reserve's interest-rate decisions. Spot gold rose 0.3% to $4,412.84 per ounce, while December gold futures fell 0.1% to $4,457.10. Analysts noted that geopolitical developments in the Persian Gulf were of secondary importance to gold, which was driven by a weaker dollar despite rising U.S. interest rates.
The U.S. dollar remained subdued, making dollar-priced metals more affordable for non-dollar holders. U.S. producer price index data is due at 1230 GMT, followed by consumer inflation figures on Friday. The Federal Reserve is expected to keep interest rates steady at its September 15-16 meeting, defying market expectations for further hikes, according to a Reuters poll.
The CME FedWatch Tool indicated a 60% chance of a rate increase this month. Higher rates generally reduce the appeal of non-yielding assets like gold. Gold is supported by concerns over U.S. fiscal pressures, which undermine confidence in government debt and the dollar.
Last month, U.S. debt exceeded $40 trillion, raising warnings of a potential fiscal crisis. Geopolitically, Iran claimed to have attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers, marking the largest escalation in attacks since the start of the six-month war. Meanwhile, spot silver rose 0.2% to $67.42, platinum fell 0.6% to $1,885.02, and palladium gained 0.2% to $1,355.50.
Source: CNBC
