Precise Investors Editorial Team
Spot gold was up 0.3% at $4,414.28 per ounce
Gold inched higher on Thursday, helped by a softer dollar, while market participants awaited US inflation data that could shape the central bank’s interest-rate path.
Spot gold was up 0.3% at $4,414.28 per ounce, as of 0419 GMT. US gold futures for December delivery dropped 0.1% to $4,457.20.
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 US rates are going higher, Marex analyst Edward Meir said.
The dollar remained subdued, making dollar-priced metals less expensive for holders of other currencies.
The US producer price index data is due at 1230 GMT, and consumer inflation figures are scheduled for release on Friday.
The central bank will hold its interest rate steady at its September 15-16 meeting and for the rest of this year, again defying market expectations for a series of hikes, according to a majority of economists in a Reuters poll.
The CME FedWatch Tool showed markets pricing in a 60% chance of a US rate hike this month. Higher rates generally make non-yielding assets less attractive to investors.
Gold is supported as US fiscal pressures continue to undermine confidence in the long-term value of government debt and the currency used to finance it, Daniel Hynes, senior commodities strategist at ANZ, said in a note.
Last month, total US debt topped $40 trillion for the first time, drawing new warnings that a fiscal crisis is brewing.
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