Precise Investors Editorial Team
Spot gold gained 0.4% to $4,418.87 an ounce
Gold moved higher on Thursday as a weaker U.S. dollar provided support ahead of inflation figures that could influence market expectations for the central bank’s next interest-rate decision.
At 06:40 GMT, spot gold, or XAU/USD, gained 0.4% to $4,418.87 an ounce. Gold futures added 0.03% to $4,461.82.
Among other precious metals, silver, or XAG/USD, rose 0.5% to $67.62 an ounce, while platinum, or XPT/USD, dropped 0.6% to $1,889.34. The U.S. Dollar Index edged down to 98.74.
The move in gold came as markets continued to assess higher U.S. Treasury yields and developments in the Middle East.
Gold has traded near the $4,400 level in recent weeks, having recovered from levels near $4,000 in July.
U.S. 10-year Treasury yields increased after a government plan to purchase as much as $6 billion of longer-dated debt. Rising bond yields can increase the opportunity cost associated with holding gold because the metal does not generate interest income.
Oil prices also remained higher, with Brent crude reaching $100 a barrel for the first time since July.
The war involving Iran and U.S. had entered its seventh month. Iran has said it is prepared for a more intensive conflict if U.S. attacks on its territory and infrastructure continue.
Tony Sycamore, senior market analyst at IG, said gold ended the previous session at around $4,402, with the weaker U.S. dollar providing support even as bond yields increased.
Sycamore noted that the metal remained below its 200-day moving average of approximately $4,537. His technical assessment indicated that gold would need to move back above that level to signal an end to the decline from its $4,697 high and a resumption of the broader upward trend.
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