Gold Prices Steady as Markets Await U.S. Rate Signals
Gold prices held steady on Thursday as investors awaited key U.S. economic data due later this week, expected to provide clearer guidance on the path of interest rates.
Spot gold was little changed at $3,390.91 per ounce , after touching its highest level since August 11 earlier in the session. U.S. gold futures for December delivery also settled flat at $3,446.70, according to Reuters data.
Attention is now focused on the Personal Consumption Expenditures (PCE) price index, due on Friday, which serves as the Federal Reserve’s preferred inflation gauge. Market expectations currently point to an over 88% probability of a 25-basis-point rate cut at the Fed’s policy meeting next month, based on CME’s FedWatch tool.
Gold, which offers no yield, typically performs well in a low-interest-rate environment, enhancing its appeal to investors.
Meanwhile, the U.S. dollar opened Thursday’s session weaker as traders increased bets on an upcoming rate cut, making gold more affordable for holders of other currencies.
Among other precious metals, silver edged up 0.1% to $38.66 per ounce, platinum slipped 0.3% to $1,343.69, while palladium gained 0.3% to $1,094.42.
