Gold little changed with US inflation data in sight

Synopsis

Gold prices hold their fort as traders keenly anticipate key inflation data that will influence interest rate strategies of the US central bank. Economists suggest the Federal Reserve will likely maintain current rates this year, while today’s focus also shifts to the European Central Bank, poised to hike rates. Ongoing geopolitical tensions and fluctuating economic indicators continue to sway the precious metals market.

Gold prices were little changed during early Asian hours on Thursday as market participants hunkered down for key inflation readings that could influence the U.S. central bank's interest rate path.

FUNDAMENTALS

Spot gold held nearly steady at $4,396.69 per ounce, as of 0015 GMT. U.S. gold futures for December delivery were down 0.4% at $4,440.80.

The U.S. producer ⁠price index ⁠data is due at 1230 GMT, and consumer inflation figures are due on Friday.

The Federal Reserve 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 shows ⁠markets are ‌assigning a 60% probability of a U.S. rate increase ​this month.

Higher rates generally make non-yielding assets less attractive to ⁠investors.

The European Central Bank looks set to ​raise interest rates on Thursday for the second time this ​year, seeking to head off an energy-driven surge in inflation triggered by the Iran war.

Iran said on Wednesday it had attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers, in the biggest wave of attacks on shipping by ‌both sides since the start of the six-month-old war.

Among other metals, spot silver was flat at $67.30 per ounce, platinum ​rose 0.1% ​at $1,897.57 and palladium gained 0.2% ⁠to $1,355.44.

The global platinum market will swing to a surplus for the first time since 2022 this year due to weaker investment and jewellery demand, ​the World Platinum Investment Council said.

DATA/EVENTS (GMT)

0600 Germany HICP Final YY Aug

0800 China Total Social Financing Aug

0800 China M2 Money Supply YY Aug

0800 China New Yuan Loans Aug

1215 EU ECB Refinancing, Deposit Rate Sep

1230 US Initial Jobless Clm 5 Sep, w/e

1230 US PPI Machine Manuf'ing Aug

1400 US Existing Home Sales Aug

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