Gold prices rise ahead of US inflation data
Gold prices recorded a slight increase with the support of a weak dollar, as markets focus on critical inflation data coming from the US.
Gold prices experienced a slight increase on Thursday, supported by the weakening of the dollar. Investors are awaiting critical inflation data to be announced from the US, which will shape the interest rate policy of the US Federal Reserve (Fed).
Latest Status in Spot and Futures
Spot gold recorded a 0.3 percent increase, trading at $4,412.84. In contrast, US gold futures contracts for December delivery showed a 0.1 percent decline, dropping to $4,457.10.
Inflation Expectations in Markets
Market participants focused on US inflation data, which will play a critical role in determining the path of the Fed's monetary policy. The producer price index data is expected to be released at 15:30 TSI, and consumer inflation data on Friday.
Analysts' Comments on the Market
Marex analyst Edward Meir emphasized that geopolitical developments in the Persian Gulf are of secondary importance for gold. Meir noted that gold is supported by the weakening dollar and that the dollar has not gained significant value despite rising interest rates.
Fed Policies and Interest Rate Projections
The vast majority of economists expect the Fed to keep interest rates steady at its September 15-16 meeting and make no changes for the rest of the year. CME FedWatch Tool data reveals that markets are pricing in a 60 percent probability of a rate hike this month.
Fiscal Pressures and Other Metals
The US public debt exceeding $40 trillion for the first time last month sparked fiscal crisis warnings. Among other precious metals, spot silver increased by 0.2 percent to $67.42, platinum fell by 0.6 percent to $1,885.02, and palladium rose by 0.2 percent to $1,355.50.