Gold prices held their ground in Asian trading on Thursday after falling from record peaks, pressured by a stronger dollar and cautious signals from the Federal Reserve.
Spot gold last rose 0.2% to $3,713.42 per ounce at 03:01 ET (07:01 GMT), following Tuesday’s all-time high of $3,790.82/oz. December U.S. Gold Futures edged up 0.1% to $3,773.02. The metal had slipped 0.7% on Wednesday as the dollar strengthened overnight, making gold costlier for holders of other currencies.
Investors eye U.S. reports
Fed Chair Jerome Powell warned on Tuesday that there is “no risk-free path” for policy, highlighting the dangers of easing too quickly or too slowly. San Francisco Fed President Mary Daly and other officials echoed this cautious approach, noting that future rate decisions will depend on incoming economic data.
Market participants are focused on key U.S. releases this week, which are expected to provide insight into whether the Fed will continue cutting rates later this year. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, boosting its attractiveness.
Weekly jobless claims due Thursday are forecast at around 230,000. The second estimate of Q2 GDP is also expected, while the August core Personal Consumption Expenditures (PCE) price index, due Friday, is projected to rise about 2.7% year-on-year, staying above the Fed’s 2% target.
Gold has repeatedly reached new highs in recent months, driven by anticipated monetary easing, geopolitical uncertainty, and strong central bank purchases.
Other metals trade cautiously
Other precious and industrial metals moved in narrow ranges. Silver Futures gained 0.2% to $44.29 per ounce, while Platinum Futures were steady at $1,484.35/oz.
Copper showed mixed performance, with London Metal Exchange Copper down 0.5% at $10,313.65 per ton and U.S. Copper Futures up 0.4% at $4.85 per pound.
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