Gold edged higher on Thursday, with spot prices rising 0.3% to $4,412.84 an ounce as the U.S. dollar cooled. U.S. gold futures for December delivery slipped 0.1% to $4,457.10.
“For now, the geopolitical developments in the Persian Gulf are of secondary importance to gold. Gold instead is teeing off on a weaker dollar, which notably is not moving up despite the fact that U.S. rates are going higher,” said Marex analyst Edward Meir.
The subdued dollar makes dollar‑priced metals cheaper for holders of other currencies, supporting demand for gold. Market participants are keeping a close eye on the U.S. producer price index, due at 1230 GMT, and the consumer inflation figures scheduled for Friday.
Economists in a Reuters poll expect the Fed to hold rates steady at its September 15‑16 meeting and for the rest of the year, defying expectations of a series of hikes. The CME FedWatch Tool, however, shows markets pricing in a 60% chance of a rate increase this month.
Daniel Hynes, senior commodities strategist at ANZ, noted that gold is buoyed “as U.S. fiscal pressures continue to undermine confidence in the long‑term value of government debt and the currency used to finance it.” Total U.S. debt topped $40 trillion last month, raising fresh concerns of a fiscal crisis.
Geopolitical tensions also linger, with Iran claiming it attacked ten ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers, marking the largest wave of attacks on shipping by both sides since the start of the six‑month‑old war.
Other metals saw modest moves: spot silver rose 0.2% to $67.42 an ounce, platinum fell 0.6% to $1,885.02, and palladium gained 0.2% to $1,355.50.
