Gold prices remained steady on Thursday as investors adopted a wait-and-see approach ahead of critical U.S. economic data that could shape the Federal Reserve’s next policy moves. A marginally weaker dollar offered mild support to the precious metal, helping it maintain recent gains.
As of 0202 GMT, spot gold traded at $3,734.04 per ounce, while U.S. gold futures for December delivery held firm at $3,765.20. The U.S. dollar index eased by 0.1%, making dollar-denominated bullion more attractive to foreign buyers.
Traders Remain Dovish on Gold Amidst Fed Cuts
Market sentiment was influenced by dovish remarks from San Francisco Fed President Mary Daly, who backed last week’s rate cut and signaled openness to further easing. Her comments reinforced expectations that the Fed may prioritize labor market recovery, even at the risk of running the economy hot.
Analysts noted key technical levels for gold, with support seen around $3,700 and $3,600. A breakout above the recent high of $3,790 could open the path toward $3,875 and potentially $4,000, according to Ilya Spivak, head of global macro at Tastylive.
Fed Chair Jerome Powell also weighed in earlier this week, stressing the need to balance inflation control with growing concerns over labor market softness. His remarks added to the cautious tone ahead of Friday’s release of the personal consumption expenditures (PCE) price index—widely regarded as the Fed’s preferred inflation gauge.
Consensus estimates point to a 0.3% month-on-month rise in August and a 2.7% annual increase, based on a Reuters poll. However, GoldSilver Central Managing Director Brian Lan suggested that unless inflation surprises to the upside, gold’s trajectory is unlikely to shift significantly. “Our longer-term view remains bullish,” he added.
Investors are also eyeing weekly U.S. jobless claims data due later today, which could offer fresh insights into labor market dynamics. Markets currently anticipate two additional 25-basis-point rate cuts before year-end, in October and December.
Gold’s safe-haven appeal continues to shine in the current low-rate environment, with the metal hitting a record high of $3,790.82 earlier this week.
In other precious metals, spot silver dipped 0.2% to $43.83 per ounce, platinum edged down 0.1% to $1,470.66, while palladium rose 0.1% to $1,210.96.
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