Gold Holds Steady as Markets Await US Inflation Data and Fed Decision
Gold prices were little changed in early Asian trade as investors awaited US inflation data and a Federal Reserve rate decision, with the ECB also set to act.
Gold prices were little changed in early Asian trading on Thursday, with investors holding back ahead of key US inflation readings that could shape the Federal Reserve's interest rate path.
Spot gold was nearly flat at $4,396.69 an ounce as of 0015 GMT, while US gold futures for December delivery slipped 0.4% to $4,440.80.
Market attention is focused on the US producer price index, due at 1230 GMT, followed by consumer inflation figures on Friday. Both releases are expected to inform the Fed's policy stance.
A majority of economists polled expect the US central bank to keep interest rates unchanged at its September 15-16 meeting and through the rest of the year, defying market expectations for a series of hikes. The CME FedWatch Tool, however, shows markets assigning a 60% probability of a rate increase this month. Higher rates tend to make non-yielding assets such as gold less attractive to investors.
In Europe, the European Central Bank is widely expected to raise interest rates on Thursday for the second time this year, aiming to contain an energy-driven surge in inflation linked to the Iran war.
Geopolitical tensions remained elevated after Iran said on Wednesday it had attacked 10 ships near the Strait of Hormuz, following the US sinking of five Iranian oil tankers — the largest wave of attacks on shipping by both sides since the six-month-old conflict began.
Among other precious metals, spot silver was flat at $67.30 an ounce, platinum edged up 0.1% to $1,897.57 and palladium gained 0.2% to $1,355.44.
The global platinum market is set to swing into a surplus this year for the first time since 2022, according to the World Platinum Investment Council, citing weaker investment and jewellery demand.
Later in the day, markets will also watch Germany's final harmonised inflation figures, China's total social financing, M2 money supply and new yuan loan data, US initial jobless claims, US existing home sales, and the ECB's refinancing and deposit rate decisions.