Gold is locked in a narrow range ahead of data

Gold prices remained relatively stable on Thursday as investors redirected their attention towards upcoming US economic data, which could offer insights into the Federal Reserve’s stance on interest rate adjustments.

At 0456 GMT, spot gold edged up by 0.2 percent to $2,314.26 per ounce, while US gold futures dipped slightly by 0.1 percent to $2,321.

Market participants are eagerly anticipating the release of key US economic indicators, including weekly jobless claims data and the University of Michigan Consumer Confidence reading, scheduled for Friday. Additionally, the upcoming release of the consumer price index data next week is also poised to influence market sentiment.

The prevailing sentiment among traders, as indicated by CME’s Fed Watch tool, suggests an expectation of approximately 66 percent likelihood of US interest rate cuts occurring in September. Lower interest rates typically diminish the opportunity cost of holding gold, rendering the precious metal a more attractive investment option.

In the realm of other precious metals, silver witnessed a 0.7 percent increase in spot transactions, reaching $27.53 per ounce. Similarly, platinum recorded a gain of 0.8 percent, trading at $982.10, while palladium experienced a 0.5 percent rise to $956.13.