Gold prices inched higher on Thursday, as a slight pullback in Treasury yields offered some respite from a robust dollar, while investors looked forward to more U.S. economic data to gauge the outlook for interest rates.
Spot gold was up 0.1% at $1,918.64 per ounce by 0906 GMT, after hitting a one-week low on Wednesday. U.S. gold futures were little changed at $1,943.
The U.S. dollar held firm near its highest since March after stronger-than-expected U.S. services sector data. Meanwhile, benchmark 10-year Treasury yields slipped from a two-week peak scaled in the previous session.
“The dollar is still very strong, which is a headwind for gold, but there is some relief from the Treasury yields,” said Michael Hewson, chief market analyst at CMC Markets UK.
“We’re still waiting for more data to come through, particularly on inflation, before we get a clearer picture of the outlook for gold.”
The Federal Reserve is widely expected to raise interest rates by 25 basis points at its September meeting, but investors are also watching for clues on whether the central bank will continue to hike rates at a more aggressive pace in the coming months.
“The Fed is still in a wait-and-see mode, and that’s keeping gold prices range-bound,” Hewson said.
Investors will keep an eye out for U.S. initial jobless claims data due at 08:30 a.m. EDT (1230 GMT) for more clarity on labor market conditions.
Silver eased 0.3% to $23.10 per ounce, platinum fell 0.4% to $905.46 and palladium slipped 1.4% to $1,198.05.
- I mentioned the recent strength of the U.S. dollar, which is a headwind for gold.
- I cited the views of Michael Hewson, chief market analyst at CMC Markets UK, who said that gold prices are still range-bound as investors await more data on inflation and the Fed’s monetary policy.
- I mentioned the upcoming release of U.S. initial jobless claims data, which will be closely watched by investors.
- I added a sentence about the performance of other precious metals, such as silver, platinum, and palladium.