Gold Maintains as Investors Await US Inflation Data
Gold prices exhibited a degree of stability in the early hours of trading on Thursday, as market participants prepared for crucial inflation data that could influence the direction of interest rates established by the U.S. central bank. Spot gold remained relatively stable at $4,396.69 per ounce, as of 0015. U.S. gold futures for December delivery recorded a decrease of 0.4%, concluding at $4,440.80. The U.S. producer price index data is set to be released at 1230, with consumer inflation figures expected on Friday. The majority of economists in a survey suggested that the Federal Reserve will keep its interest rate at its September 15-16 meeting and for the rest of this year, once again defying market expectations for a series of raises.
The CME FedWatch Tool suggests that markets are currently pricing in a 60% likelihood of a U.S. rate hike occurring this month. Higher rates generally reduce the attractiveness of non-yielding assets for investors. The European Central Bank seems ready to raise interest rates on Thursday for the second time this year, with the objective of addressing an inflation surge driven by energy costs linked to the Iran conflict. On Wednesday, Iran declared that it had aimed at 10 vessels near the Strait of Hormuz, in response to the U.S. sinking of five Iranian oil tankers.
This represents the most notable intensification in maritime attacks by both sides since the beginning of the six-month-long conflict. Among other metals, spot silver remained unchanged at $67.30 per ounce, while platinum increased by 0.1% to $1,897.57 and palladium saw a gain of 0.2%, reaching $1,355.44. The global platinum market is anticipated to witness a surplus for the first time since 2022 this year, a development attributed to a decrease in both investment and jewellery demand, as reported by the World Platinum Investment Council.
